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"I really like Bitcoin. I own bitcoins." - David Marcus, President, PayPal He adds: "People are confused. They think because it's called cryptocurrency it's a
by cs702 13y ago
"I really like Bitcoin. I own bitcoins." - David Marcus, President, PayPal
He adds: "People are confused. They think because it's called cryptocurrency it's a currency. I don't think it is a currency. It's a store of value, a distributed ledger. It's a great place to put assets, especially in places like Argentina with 40 percent inflation, where $1 today is worth 60 cents in a year, and a government's currency does not hold value. It's also a good investment vehicle if you have an appetite for risk. But it won't be a currency until volatility slows down. Whenever the regulatory framework is clearer, and the volatility comes down, then we'll consider it."
I agree with him that Bitcoin is a ready-made solution for people living in less stable economies who want to diversify away from their (risky) local currency, particularly if they find it difficult or impossible to buy US dollars or euros through their local financial system.
Would you rather own (a) savings in a bank account denominated in a "soft" currency (whether Argentine pesos, Bolivian bolivianos, Libyan dinars, North Korean wons, Syrian pounds, Venezuelan bolivares, or some other one), or (b) bitcoins, which, despite their recent volatility, are used globally[1] and do not require trusting a third party?
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[1] http://getaddr.bitnodes.io/251/ http://getaddr.bitnodes.io/251/
- chalst 13y agoI have the opposite view: Bitcoins are exciting and promising as a currency, but they are very flawed as a store of value. If for some reason, I had no confidence in any currency/bonds I could get my hands on, I would prefer gold to Bitcoins, because I expect that, while it is more volatile than a properly run currency, it is far less volatile than Bitcoin and I expect that to remain so in the future.
- gasull 13y agoI would rather have bitcoins than any other currency for my savings. For spending, you just need the local currency, since Bitcoin isn't accepted in most places yet.
- lukev 13y agoReally? For your savings? Bitcoin is many things, but a low-risk investment is not one of them.
- alexmat 13y agoPeople have varying risk tolerance. For someone who is young, travels a lot and has several sources of income, Bitcoin is an attractive option.
- acjohnson55 13y agoIf your risk tolerance is having vastly different amounts of wealth over the course of the day...then sure.
- alexmat 13y agoOn a day to day basis sure, but over weeks and months, the trend has been positive. As long as you purchase bitcoins well in advance of when you need to spend them, they have historically preformed very well even with all the volatility. Assuming you buy into the idea of network effect creating a positive price feedback loop, it's a reasonable place to stash cash that you may need on short notice or when traveling abroad. For reference: http://bitcoincharts.com/charts/bitstampUSD#rg1460ztgSzm1g40zm2g25zvzl http://bitcoincharts.com/charts/bitstampUSD#rg1460ztgSzm1g40...
- bonemachine 13y agoWow. Been working on a pure-BTC retirement portfolio fund that I'd luuuv to sell you. Step right up...