Commentary: Don’t trust the hype – Bitcoin will never be a wise investment

  • 📰 ChannelNewsAsia
  • ⏱ Reading Time:
  • 35 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 66%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

The sooner Bitcoin and other DLT-based cryptocurrencies are relegated to a footnote in economic history, the better, says Willem H Buiter.

First, it is unclear how buying Bitcoin can mitigate company risk. The only risk Moyo identifies is that of missing out on what could be one of the greatest speculative bubbles of all time.

Quite the contrary: Bitcoin’s price volatility since its inception in 2009 has been staggering. On March 29, 2021, its price reached US$57,856 – some distance below its all-time high of $61,284 on March 13 – with a market cap close to US$1 trillion. There can be no lender of last resort or market maker of last resort capable of systemic rescue operations with Bitcoin and other decentralised cryptocurrencies.Finally, is Bitcoin really the vanguard of a new digital-currency infrastructure that wise investors cannot afford to ignore?

Alternatively, those accounts could be guaranteed by the central bank, but held with a wide range of private financial institutions.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

You can buy a Tesla now with Bitcoin, many people are still in denial, they will be paying alot for BTC when they wake up.

Digital money good for buying digital stuff. Bitcoin is no good for buying real things. Like all money exchanges, it tend to be used in speculations. Unless the nation issues their own digital currency, which currency exchange can one trust?

It's not an investment - it's a gamble.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 6. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines