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| Cryptocurrency Conundrum |
Cryptocurrency Conundrum: An Economic Evolution?
CryptoInvesting, Cryptocurrency, Blockchain and Bitcoin have entered our vocabulary in recent times.
The crypto conundrum: is Bitcoin a currency or an asset?
If Bitcoin becomes more widely accepted as payment then it may become a currency. If it is not widely accepted then it may remain an asset. If it is an asset (CryptoAsset?), is it a bubble right now? Will cryptocurrencies replace fiat currencies or will governments regulate and create their own cryptocurrencies?
The technology behind Bitcoin, blockchain, has caught on for other uses such as supply chain management and smart contracts.
Bitcoin has its fiercely loyal supporters and detractors. Some don’t like Bitcoin’s anonymity and yet it’s technology, blockchain, is supposed to be a public distributed ledger of sorts. All very confusing.
Blockchain has started a new form of (crowdfunding) fund-raising – the ICO, Initial Coin Offering – which is not very well regulated as yet. Also, a possible futures market may open up for Bitcoin.
Banks are now getting interested in Bitcoin and Blockchain, and FinTech in general. Some countries have banned Bitcoin exchanges while some others are regulating it – this has resulting in an increase in the private, over-the-counter (OTC) market for Bitcoin. Is Bitcoin part of the digital disruption / economic evolution we are going through right now?
Which way this could go is anyone’s guess.
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