Discussion Board

Problems with Cryptocurrency

I chose this article on cryptocurrency, because I like the fact that it’s a different view on it since it’s been so hyped lately, it’s nice to get a different view and why it’s actually not that great. In the article, the man says that bitcoin is never going to be a currency because they are fatally flawed. Last year bitcoin gained a lot of recognition, due to the fact that that the trade was around $20,000. It’s not trading at $4,330 and the cryptocurrency market lost $700 billion since last year when it was at its highest.

It’s said that since it’s decreased by 80%, it’s not considered healthy in terms of monetary value. UBS Paul Donovan who is the Global Wealth Management’s chief economist said that the fatal flaw of cryptocurrency is that they will never be a store of value. It’s impossible to control the supply in response to drop in demand, and the store of value for anything monetary is about balancing supply and demand, and because of this, it’s highly unlikely that cryptocurrency such as the bitcoin will ever replace the dollar.

I agree with this article wholeheartedly. I think it's outlandish to believe that the bitcoin will ever replace the dollar, and I think it's crazy that people are willing to invest their actual hard earned money into something that at any moment could drop in earnings is a scary investment. This isn't like stocks and trading in that aspect, but instead of investing money into something that you can't really spend unless it's on the internet and only takes cryptocurrency, which even now is not very common. 

https://www.cnbc.com/2018/11/30/i-come-to-bury-bitcoin-not-to-praise-it-ubs.html

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