Bank of England employee Thomas Belsham has published a massive article on how useless Bitcoin is in each use case.
In his article, Thomas Belsham recalls that the use of bitcoin is usually considered in three possible ways: units of measurement, medium of exchange and means of storing wealth.
According to an employee of the Bank of England’s media and stakeholder relations department, bitcoin cannot act as a unit of measurement. Belsham emphasizes that only bitcoins are measured in bitcoins. So far, no one measures in bitcoins, for example, the capitalization of the stock market.
As for the medium of exchange, according to Belsham, the only intrinsic value of the first cryptocurrency can be called the emission limitation. And this can be a problem:
“What will happen after the last bitcoin is mined? Not yet known. Miners now receive approximately $ 47 million in BTC daily as block creation rewards. The average transaction fee is $ 1.88 and when there is no reward for the block, the commission should reach $ 223 to provide similar income for miners. “
Belsham stressed that such high commissions will put an end to the use of BTC for money transfers, exchange of values. This will lead to a drop in income and miners will transfer equipment to the production of other cryptocurrencies. In turn, this could jeopardize the security of Bitcoin’s distributed ledger.
And the first cryptocurrency cannot be used as a means of storing wealth due to its volatility.
“The average daily volatility of BTC has been a whopping 3.5% since 2015. That’s four times the S & P500 over the same period! ”Belsham writes.
Recall that in mid-November, the founder of the Skybridge Capital investment company Anthony Scaramucci said that the bitcoin rate could soon reach $ 500,000.
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