Bitcoin has never been a reliable source of payment. A decade ago, Bitcoin stood at $0.003; whereas, after 7 years, it stands at $20,000. A jump that nobody would have expected from Bitcoin. Apart from it, 2018 has been the worst year for Bitcoin with over 80% of the decline in its value. Two weeks ago, it was expected that the Bitcoin was will drop by $7,000 levels but shockingly, it spiked to $10,350.
The transactions by Bitcoin are also very slow along with many other issues, which is why many people do not prefer it as currency. All these reasons contribute to the statement of David, who consider Bitcoin as an asset and not as an exchange method.
The volatility issues are expected to be less with Libra due to a basket of bonds and currencies backing it, as per Libra Association.
We all have heard the news of Facebook producing their own digital money system under the name of “Libra”. The release of this cryptocurrency is not expected any time soon due to the backlash by the policymakers. We all might be thinking that this is a new type of currency, but David Marcus, the project head of Libra has to say something else about it.
During the DealBook Conference, David Marcus talked about his views on BitCoin. He commented that BitCoin has more gold characteristics rather than that of currency. He added, BitCoin is more like a financial asset, which is different than being a currency. David Marcus is also behind the popular crypto term “digital gold”.
To explain it, he further added that Bitcoin has never been a reliable method of payment due to frequent and unexpected surges in its market value. People will not be interested in using Bitcoin that can suffer a loss of 20% in a day, it’s too much of a risk. Bitcoin is not an ideal medium of exchange, which is why it is also discouraged by regulators.
David Marcus is of the view that Bitcoin is like physical gold, which serves the purpose of investment. It’s separate from the rest of the market.
You can watch the complete conversation in this video:
Featured photo: Alex Wong / Getty Images