When I first heard of BitCoin, it was about 6-7 years ago. This Pioneer product was sold, positioned and marketed as the FUTURE currency to replace USD!!!
The truth is there is no way BitCoin is going to displace and replace USD for the next 10 years if EURO can't make the cut. Don't forget it was USD that replaced and displaced GOLD!!!
EURO is a European effort or shall I say the German effort. Now that BitCoin rose, flew and descended suddenly the silence over BitCoin is pretty scary after the crash from peak of about USD20,000 to 3,000 low (15% of peak value) over a period of about 1 year.
The promoters have cleverly market this BitCoin as CURRENCY and with the word COIN makes it credible. This is a modern day TULIPOMANIA.
Let us go back to understand CURRENCY. What is considered a currency? Currency is an acceptable instrument by Govt Instrument to settle dues at both local and international level. The key word is GOVT and settlement. If what you have on hands are not accepted by your govt to pay bills, do you considered it a CURRENCY????? NO!!!!! Except maybe it is PRIVATELY accepted for private use. If you can't use bitcoin to pay your income tax what currency is that!!! Hell bank notes!!!
REMEMBER BitCoin is NOT a FIAT CURRENCY (legal tender note). It is just another class of commodity or asset with the word COIN attached to the name of the product and someone cleverly coined both the word BitCoin and CryptoCurrency.
The movement of this product resemble the trend of COMMODITIES and not currency except those faced serious devaluation against USD like Turkish Lira and Russian Ruble.
No comments:
Post a Comment