Bitcoin is not the best means of preserving value. A Professor at Yale University

Lecturer in Finance and management at Yale University Professor William Goetzman gave a short interview to the local newspaper Yale Insights on the topic of the invention of cryptocurrencies. The discussion was focused around the purpose and value of money. According to the Professor, the volatility of Bitcoin highlights the problem of trust, which is necessary for the widespread adoption of the currency. At the same time as shows the proliferation of cryptocurrencies, traditional government-backed currency does not meet the requirements of everyone.

Gettman convinced that Bitcoin is a store of value, as its value is constantly changing. Depending on the form of the question, the volatility of Bitcoin can be as our most valuable asset and worst enemy. However, the argument against Bitcoin as a store of values will certainly cause unrest, many in the community. This is especially true of Bitcoin maximalists, who have long de facto recognized it as “digital gold”.

Usually these people claim that all other features of currencies including convenience, are secondary. And the most important feature of a cryptocurrency to save the values. According to William Gettman, “any currency has to complete at least a few basic tasks”.

It must be a store of value. Instrument of transfer values. And given such a high volatility of Bitcoin, it is not very suitable for maintaining the value. You can invest $ 100 today, but after a few weeks they will turn into 25.

According to the Professor, while Bitcoin will not overcome this problem, it cannot be called a real currency. However, it should be noted that Gettman refers mainly to negative fluctuations. When the market goes up, rarely hear complaints about volatility. More data look at cryptodata.

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