Finance

What is Bitcoin?

Cryptocurrency Exchange FTX
Comments (2)
  1. Rick Shapiro says:

    What is crypto? It is certainly not a currency,because the government will not accept it as taxes, nor declare it legal tender for all debts public or private. And a good thing; because between automatic limitation on bitcoin issuance, and the proliferation of alternate coins, the economy would be on a rollercoaster between depression (like the centuries of depression in midieval Europe as silver drained toward the east), and hyperinflation (like the one that devastated the Spanish economy after Potosi). The Fed may not be competent to fine-tune the economy; but it can prevent devastating swings by roughly matching money supply to economic activity.
    Neither is it an investment, because crypto doesn’t even pretend to enable money-making activity.
    What it is, is a collectable, like baseball cards and tulips. It deserves no regulation from government nor bailouts of fools who “invest” in it.

    1. Elaine Schwartz says:

      Yes, Rick, I agree with most of what you say. But, does it make a difference if other countries like El Salvador have declared bitcoin legal tender and encouaged using it? Do take look at our econlife post “A Bitcoin Story With The Right Incentives and the Wrong Results.”

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