Is Bitcoin A Good Idea (As A Currency)?
If you’ve been into the news recently, then you must know of the popularity spike this year of the cryptocurrency Bitcoin. However, the CEO of Tesla, Elon Musk, has just suspended using the crypto for buying the company’s electric cars.
That news is related to this week’s low, reaching below $45,000. That is according to Bitcoin.com (https://markets.bitcoin.com/crypto/BTC). But they’re not related in the way most would believe it is, with the low making Musk stop Tesla exchanges. It’s, in reality, the opposite. Musk suspended Bitcoin exchanges for the cars because mining isn’t environmental-friendly, emitting harmful gases into the atmosphere. And following that, the crypto dropped.
However, are these digital currencies worth exchanging in the first place? Well, according to Professor Tigger of the podcast Newsminute Economics, the whole thing isn’t a good idea.
“If you’re an investor, these cryptos can be a way to make money, buying in at record lows and selling some at highs. Though, when it comes to being an official currency, things get a bit complicated. There are usually four main attributes of currencies, making them convenient. It has to be portable, easy to carry. It needs to be uniform, with each piece worth and looking the same. Divisibility is required, with different pieces small enough to pay for any price. And also, it has to be durable, meaning it wouldn’t break easily. Cryptos, e-money, and cash all have these kinds of attributes. But in my opinion, there should be a fifth requirement, that the currency has to be quite stable, at least in short periods. That’s important since if it’s not stable, the money you have can vary daily. Today, you have 100, and tomorrow, you only have 80. That’s what’s happening to Bitcoin and these cryptos constantly, and don’t even let me get to pay. That would be quite bizarre. You pay 1000, but the store only accepts Bitcoin. So you give them the money. However, the next thing you know, it’s only worth half as before! So Bitcoin, as a currency, isn’t that a great idea, either for the customer or the seller. But who knows? Maybe people would find a solution, and cryptos would be the mainstream. It could be like how we came from the exchange of shells, animal skins, and stones to using cash.”
So, what do you think, reader? Not about how money evolved. About Bitcoin being a currency. Is it a good idea for you? Whatever’s your opinion, you should always share it with others, and maybe they can share theirs with you too! Can you even design a currency of your own? Well, you’ll have to try that yourself. So that’s the end of this production of the New News Newsminute, sponsored by the economics show of Professor Tigger. Thank you for reading, and tune in next week for newer updates around the globe.