“A leading economist explains why bitcoin isn’t money” – BusinessInsider | $1185.01

3

The problem with a finite asset is that the economy is not finite, and if you have a limited amount of money to match this almost unlimited capacity of people in the economy to do things, money doesn’t work.

Eulogy made by: Ann Pettifor

Source

Ofir Beigel

Owner at 99 Coins ltd.
Blogger and owner of 99Bitcoins. I've been dealing with Bitcoin since the beginning of 2013 and it taught me a lesson in finance that I couldn't get anywhere else on the planet. I'm not a techie, I don't understand "Hashes" and "Protocols", I designed this website with people like myself in mind. My expertise is online marketing and I've dedicated a large portion of 99Bitcoins to Bitcoin marketing.

3 Comments

  1. Ultima Thule on

    Any amount of money is suitable for any volume of goods. It is not a money, but the SHARE of the money which is important. So it doesn’t matter whether you have 1 or 1 million. It is important, if your money is 0.00001 or 0.001 of the total amount of money .
    .
    So there is no problem with BTC that it is limited in the amount.
    .
    But BTC is NOT A MONEY ! BTC is a TOY ! A point system like in a childish card game or so. Its value is EXACTLY ZERO.

    The money has to fulfill one of the two conditions:
    – should posses a material value (gold, salt, grain etc.)
    – should posses a LEGAL VALUE (forced by the power of the state). For example a fiat money (fiduciary money) has one advanatge: there is someone, who CANNOT REFUSE to accept this money ! It is when you pay taxes and the state has to accept the payment ! BTC has NEITHER of those two features ! Hence this is NOT A MONEY.

  2. Gold’s finite too – don’t see that dying any time soon.
    The quantum computing angle could become an issue, but surely if that is true for decryption, it will work for encryption too.

Leave A Reply