Last updated on February 5th, 2018 at 10:59 pm
You see despite bitcoin being categorised as a “currency”, it is not a currency. There really is no such thing as “cryptocurrency”. For a currency to be legitimate it needs to be: backed by something, like an asset, or something with intrinsic value, like gold; it must be legal tender (and managed by a local authority); and generally accepted as a medium for exchange… among other qualities.
The only thing bitcoin has going for it is that it is accepted as money by some organisations, and rational people are willing to pay money for it (so it has value).
However, if it can’t be taxed, it can’t buy you a Mars Bar, and it isn’t backed by anything at all – and in fact is poorly viewed by certain authorities.
It’s insulting to economists to call it an asset, an investment, or a currency.
Eulogy made by David Taylor