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Did Bitcoin fail as a currency?

Did Bitcoin fail as a currency?

The financial rating agency Weiss has once again commented on Bitcoin via Twitter. The tweet said:

“Unfortunately Bitcoin has finally failed as a currency. People use it mainly for speculation. That's not Bitcoin's mistake, of course. “

The company had already begun issuing Kryptoasset rankings to its customers a few months ago. At the same time, the usability and function of cryptoassets played a role.

At the same time, the company remained optimistic about the future of crypto currencies and considered it a good fit for a stock portfolio. Tony Sagami, the technology expert on the Weiss team, wrote in a blog post:

“The least correlated assets to traditional asset classes – the S & P 500, the [US] dollar, international holdings, bonds “Commodities and even gold – are cryptocurrencies.”

There are several reasons why Bitcoin is not being used more widely as a means of payment. The volatility of the course is one of them. The value of Bitcoin has fluctuated sharply in recent months. It is understandable, therefore, if users prefer their Bitcoin rather than spending it now, at a relatively low price. Another reason is that very few sellers accept payments in Bitcoin. Some even do so for advertising reasons and leave the option in reality.

Bitcoin's lack of use has led to other legacy coins focus on this aspect. So they are looking for ways to make payments with crypto currencies easier, cheaper and more intuitive. Bitcoin purists are skeptical of this tendency and emphasize that Bitcoin is primarily a value investment. It is therefore not necessary to have a fast network for electronic payments, they say.

The low usage of Bitcoin is also a paradox, because the hash rate has recently been close to its record highs. However, mining is unrelated to the number of real-world transactions and their processing on the network. The mining process itself and the speculation on the crypto exchanges are subject to the principles of rewards and incentives. This has little to do with the actual output of Bitcoin. Most miners sell the bitcoin for profit and to cover the costs.

In addition, there is no real economy for bitcoin outside niche areas. Add to that the limited bitcoin count, which makes a large application in the real world difficult. Due to the limited amount and deflationary nature, Bitcoin is very different from Fiat currencies. For example, central banks in fiat currencies can change the money supply depending on the economic situation and provide additional liquidity if needed.

Did Bitcoin fail as a currency?

Sources: Twitter, White Cryptocurrency Ratings, Pixabay

Author: Peter Joost – Source Post: https://www.kryptovergleich.org/hat-bitcoin-als-waehrung-versagt/

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