No. of Recommendations: 3
Here and elsewhere Syke6 has patiently explained (most recently on the Berkshire board) to enthusiasts why Bitcoin will not soon (probably never) become the reserve currency, basis for a monetary system, etc. - most of it boiling down to “it’s volatile.”
Who wants to sell something on Tuesday and by the time you get to the bank on Thursday find it’s lost 10%-20% of its “worth”?
Headline from Barron’s:
Bitcoin Falls to Below $56,000.
Why the Crypto Is Set to Tumble Further.
Bitcoin and other cryptocurrencies were diving early Friday as the market took fright at the pending refund of assets from the collapsed Mt. Gox crypto exchange.
Bitcoin was down 3.2% over the past 24 hours to $55,645. Mt. Gox transferred 47,228 Bitcoin, worth more than $2.5 billion to a new wallet, according to blockchain analytics firm Arkham Intelligence. Mt. Gox’s trustee has said it would begin making repayments to creditors this month.
“Selling pressure will unlikely decrease in the coming days. The German government still has over $2.3 billion worth of Bitcoin, Mt. Gox has more than $8 billion, and the U.S. government has over $12 billion. The direction of Bitcoin in the coming days will be determined by the selling pressure from Mt. Gox users,” said Rachel Lin, CEO of trading platform SynFutures.
“If there is enough selling to push the price lower, we might be looking at the $50,000 level” https://apple.news/AuzgE1ZiYRs2hf_rm5e5t9ASure, the dollar, yen, or renminbi gain or lose a little value here and there over time, but rarely so drastically or so often. The Bitcoin (and pretenders) are mostly slow, expensive to use, and incredibly volatile. That makes them great for financial roulette traders, but not so much for people who need stability. Which is, of course, mostly everyone.
