Published on October 11th, 2017 | by bitcoin0
Bitcoin isn’t like money – non-liquidity creates high risk
While it allows transactions in a similar way to cash, Bitcoin is
still just a “censorship-resistant asset class,” out of the reach
of state control and yet to form a part of the system of
settlement and credit that defines money.
“Fiat money is still the final form of settlement – governments
still collect taxes in fiat money and salaries are still paid in
fiat money,” a team of analysts led by Gautam Chhugani and Gaurav
Jangale said in a note to clients on Wednesday.
“Thus, for now, Bitcoin has only emerged as a ‘censorship
resistant’ asset class,” Bernstein said.
The cryptocurrency, which is hovering around the $4,800 mark, is
more like an economy run by its users rather than a threat to
“Bitcoin could be seen as virtual ‘bearer cash’ economy supported
by a decentralized ‘trustless’ network – a new crypto economy
with its own protocol or policy,” Bernstein said.