An interesting post by Aswath Damodaran Professor of Finance at the Stern School of Business at New York University, who convincingly demonstrates why Bitcoin at this stage can’t have the status of currency.
Here are some snippets from his blog:
‘The weakest link in crypto currencies has been their failure to make deeper inroads as mediums of exchange or as stores of value. Using Bitcoin, to illustrate, it is disappointing that so few retailers still accept it as payment for goods and services.’
‘You can see the disconnect in how crypto currencies have been greeted, by contrasting the rousing reception that markets have given them with the arms length at which they have been held by merchandisers and consumers. In the graph below, I focus on the divergence between the market price rise of bitcoin and the increase in the number of transactions involving bitcoin:’