Bitcoin as a means of savings is worse than the Australian dollar. The opinion of the banker

Many organizations already have their own interests in the cryptocurrency ecosystem. They are expressed in completely different forms: partnerships, agreements, accepting payments or registration of brands and trademarks. In an attempt to stop the wave of adoption of the Reserve Bank of Australia (RBA) formally announced an article that discusses in detail the consequences of what is happening.

In the introduction reads as follows.

Most people consider cryptocurrency as a speculative high risk investment asset class, rather than a payment system. We observe a very low probability of a significant adoption of cryptocurrencies as a retail payments in Australia.

Below — a graph of daily changes in the value of the Australian dollar and Bitcoin. The difference in volatility is obvious.

Source: Reserve Bank of Australia

Taking into account expressed on a chart of price fluctuations in the RBA’s claim that the unstable price of Bitcoin makes it a worse store of value than even Australian dollars (AUD). As noted by the representatives of the Bank, the Bitcoin is not able to run the “network effect”, which it is not considered suitable for widespread use in commercial and domestic payments. This is partly due to high volatility, a lack of adequate scalability and uncertainty in regulation.

It is important to note that while these existential constraints BTC can become a barrier for widespread adoption, banking giants including JP Morgan, are about to release their own cryptocurrency and to use technology to satisfy their business needs.

In addition to the warnings about global warming, which allegedly provokes cryptocurrency mining, the report also have such insights.

Although the end user can make transactions and manage their assets in bitcoins without involving a third party, mediators often on the contrary play a positive role from the point of view of trust.

As a final blow to the adoption of cryptocurrencies, the financial institution noted two main factors. Is the difficulty of mining and the absence of technical possibility of rapid processing of payments as a potential problem with the use of Bitcoin in everyday life.

In our cryptodata of hontarov you will find lots of other useful information.

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