The price of bitcoin has risen by more than 340% this year, but many analysts describe it as a bubble, and believe that it will never turn into an effective way to buy and sell.
In a report published by Business Insider in its French version, writer Isabel Lee says that many companies – such as Tesla and PayPal – have come to accept Bitcoin as a means of payment, which has brought them many sharp criticisms. Especially because of the large fluctuation in the price of the digital currency.
The author adds that the large changes in Bitcoin’s prices, along with the limited supply, are among the main reasons why many consider that it is not an effective method of payment.
Among them is US Treasury Secretary Janet Yellen, who a few days ago expressed doubts about the possibility of using Bitcoin to make money transfers. “I don’t think that Bitcoin will become widely used as a mechanism for financial transfers. This is a completely ineffective way to accomplish financial transactions, and the amount of energy and the expenditures in processing these processes are enormous. “
The author pointed out that the Bitcoin currency – which has been in circulation since 2009 – attracts many thanks to the features it provides, such as the degree of protection, the anonymity of the owner, and its decentralized nature. However, experts believe that it will not turn into an effective means of buying and selling.
“Bitcoin may someday be used as a means of payment and circulated among people,” said Pocket Network director Adam Lebowski, but at the present time cryptocurrencies are only used as investment and protection against inflation.
According to the author, there are more strict opinions that confirm that this currency is not money, and will never become a means of payment, and presented the opinions of 5 of the most prominent experts in the field of cryptocurrencies:
“There is a widespread belief that Bitcoin is beginning to thrive and should be used as a means of payment, but this view lacks accuracy. Bitcoin will never become a substitute for money in consumer markets,” says William Quigley, Managing Director of Magnetic, a blockchain and crypto currency investment firm “They are slow, expensive and very volatile, so stable cryptocurrencies, which are designed to cushion volatility, will do the trick.”
“I have a feeling that bitcoin has gone too far down the path of a store of value rather than a method of payment. It looks more like gold than euro, for example. . There might be use cases as a payment method, but I don’t think you’ll be using it anytime soon to pay at the supermarket. ” – Jeffrey Wang, Head of America at Amber Group, a cryptocurrency financial services company
“We believe that bitcoin is becoming digital gold, that is, a store of value. Other virtual currencies such as the USDC (a ‘stablecoin’ pegged to the US dollar) should better play the role of a common payment method “. – Alex Zhao, CEO of Standard Hashrate Group, an open platform dedicated to bitcoin mining