Bitcoin will never replace us dollar, says chief editor of the magazine Bloomberg Markets ‘ Joe Weisenthal.
On 3 September, Weisenthal invited to the editor “bitcoin evangelists” to argue with their assumption that the price of cryptocurrencies will soar to $10 500. During the meeting he shared his thoughts from the publication of Bloomberg, the author of which wrote about what bitcoin is “virtually impossible” to become a “successor” of the dollar. According to him, the asset is too volatile for it to become a global reserve.
“If bitcoin can’t be lender of last resort, since no Central Bank could not create it, and therefore rely on bitcoin is extremely risky, – wrote the author, however, michinery think the advantage of cryptocurrency”.
Others attending experts spoke about the many aspects of bitcoin that its proponents consider “revolutionary”. However, as suggested by the author of the article, “annoying” supporters of bitcoin never really discussed why the cryptocurrency has not managed to become a global medium of exchange or monetary unit. According to the author, no one will ever want to deal with debts denominated in bitcoins, and no state will accept taxes in bitcoin, since that will limit the government’s ability to regulate commercial activity.
“In the end, we come to the fact that we start to discuss the basics of Economics, and is a waste of time”, – said the author of the bitcoin evangelists.
Weisenthal supported him, repeating in his Twitter account, the idea that cryptocurrency will never replace the U.S. dollar.
Discussion was held on the same day when bitcoin is back to a bullish trend and for the first time in two weeks has risen above $10 700. Apparently, the price surge was due to the weakening of the Chinese Renminbi and the measures for capital controls adopted in Argentina. A coincidence of these two events with a price spike of bitcoin has prompted many of his supporters claim that investors see cryptocurrency as a “sanctuary asset”.
Bloomberg Markets and Weisenthal did not challenge this idea. In article by Bloomberg Markets States: although the likelihood that bitcoin will replace the dollar, small, cryptocurrency can nevertheless be compared with gold.
Ryan Selkis, the founder of a startup crypto-data Messari, supported both judgments of Vizentalja – about bitcoin as a global reserve and bitcoin as a method of protecting the value of the investment. He wrote on Twitter:
“Replace the bitcoin dollar/state currencies in order to MoE, capital markets advisors, etc. seems unlikely, but it can become “the best gold” and to demand as one of the reserves in the sphere of debt obligations. Thus, it is a $7 trillion + $17 trillion. We will be happy if the price of bitcoin will reach $1.5 million”.