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Despite the rise in the value of bitcoins, digital currency is becoming increasingly difficult to spend Don Pittis.
In 2010, Laszlo Hanyecz goes into history by becoming the first to buy two Domino pizzas for 10,000 bitcoins. At the time, the value of coins was worth very little. Now, however, a bitcoin is trading around $ 6,600.
According to Pittis, a CBCNews reporter, although Bitcoin may seem like a success, he thinks he's derailed from his original purpose.
He writes:
In all respects, a bitcoin has become the currency that is hard to spend.
Pittis claims that in a wage economy, the purpose and value of money have two factors, one of which is a store of value. Regarding this factor, Pittis declares that digital currency has fulfilled its function. However, when it relates to a price and exchange measure, he believes that cryptocurrency has failed.
He adds:
Trying to price your goods or services in bitcoins is a crazy race.
The solution would be to have a bitcoin value in fiduciary money, writes Pittis. According to him, it is the US dollar and gold that remain relatively stable, saying that bitcoin is "only a speculative investment".
"It is well known that a stable pricing is essential for a health economy," he writes, the effect of price developments having affected many companies across the globe. world. One of the most famous is the Dutch mania tulip of the seventeenth century, which Pittis speaks in his article.
One must ask, however, whether he actually gets digital currency. He writes that cryptocurrencies only retain their value where anonymity is paramount. Yes, they can be used on the black web to escape the identity, but the same goes for those who want to escape an electronic track.
But, the use of bitcoin also helps those who are facing an economic crisis. Take Venezuela, for example. Hyperinflation and government policies prevent most people from having access to foreign currencies. As a result, they are turning to crypto-currencies such as bitcoin and dashboard to buy food and groceries overseas. Western Union and PayPal not being active in Venezuela, thousands of people rely on platforms such as Cryptobuyer, a Venezuelan-based cryptocurrency brokerage company that has more than 10,000 registered users.
They then use their bitcoins to acquire gift cards that they can use on online marketplaces like Amazon, allowing them to buy goods overseas.
For the Venezuelan people, the use of bitcoin does not become harder to use. For them, it's a lifesaver.
Image from Shutterstock.