David Andolfatto, Vice President and Research Director at the Federal Reserve Bank of St Louis, has shared his views on why he considers Bitcoin to be a safe asset.
In a blog post, Andolfatto describes safe asset as an object with attributes that traders can mutually agree on very quickly and at little cost. They are “simple assets”, easily recognizable without much effort.
“I think that Bitcoin could be the world's next great safe asset. At least, it certainly seems to have all the properties that are desired in a safe asset”, he said.
Bitcoin – a simple asset
Andolfatto says that Bitcoin is a simple asset in the sense that it is a pure fiat object and constitutes no legal claim against anything of intrinsic value. Bitcoin is simply a record-keeping technology, pays no interest and possession corresponds to ownership (unless counterparties are involved). Moreover, the ledger has proven itself secure.
http://www.econotimes.com/Bitcoin-Could-Be-The-Worlds-Next-Great-Safe-Asset-US-Banker-Argues-186928
Topic: [2016-03-31]Bitcoin Could Be The World's Next Great Safe Asset,US Banker Argues (Read 305 times)
March 31, 2016, 02:37:50 AM
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