Bitcoin is not a currency, thinks Mohamed El-Erian, who is a Chief Economic Advisor in Allianz. Explaining his position on the recent economic forum in Singapore, he told:
“A currency serves as a predictable store of value, and serves as a medium of exchange that's pretty stable in value as well — bitcoins aren't that there yet, they're still trying to find stability so it's more of a commodity than it's a currency.”
As CNBC reminds, last month the same analyst told that Bitcoin is overestimated and it does not deserve such prices (he was talking about $4000, BTC has just surpassed $7000 this morning).
However, Allianz is the third largest financial service by revenue, and the opinion of its experts should not be underestimated. Maybe Bitcoin is a currency, but...Read more
“A currency serves as a predictable store of value, and serves as a medium of exchange that's pretty stable in value as well — bitcoins aren't that there yet, they're still trying to find stability so it's more of a commodity than it's a currency.”
As CNBC reminds, last month the same analyst told that Bitcoin is overestimated and it does not deserve such prices (he was talking about $4000, BTC has just surpassed $7000 this morning).
However, Allianz is the third largest financial service by revenue, and the opinion of its experts should not be underestimated. Maybe Bitcoin is a currency, but...Read more
Bitcoins are not currencies, even if we all call it that and wish for it. The fact of the matter is, bitcoins are not currencies because it is not legally accepted tender, it is not backed up by commodity such as gold and silver, nor is it backed up by any government. All of which are unique characteristics of a fiat currency, which bitcoins do not have. I guess, they are correct in their classification as there is really now way yet to classify it otherwise. Maybe in the future there would be some kind of classification for it.