I think the world is starting to realise that, just like gold is a good hedge, bitcoin is a great hedge against the system because it's outside the system," says Bobby Lee, the CEO and cofounder of BTCC, one of China's three biggest bitcoin exchanges.
Bitcoin, likewise, has attracted investor attention when uncertainty and risk is high. The currency spiked on Donald Trump's shock victory in the US electionand bitcoin wallet provider Blockchain had a record month as a result.Bitcoin, likewise, has attracted investor attention when uncertainty and risk is high. The currency spiked on Donald Trump's shock victory in the US electionand bitcoin wallet provider Blockchain had a record month as a result.
I think the world is starting to realise that, just like gold is a good hedge, bitcoin is a great hedge against the system because it's outside the system," says Bobby Lee, the CEO and cofounder of BTCC, one of China's three biggest bitcoin exchanges.
I think the world is starting to realise that, just like gold is a good hedge, bitcoin is a great hedge against the system because it's outside the system," says Bobby Lee, the CEO and cofounder of BTCC, one of China's three biggest bitcoin exchanges.I think the world is starting to realise that, just like gold is a good hedge, bitcoin is a great hedge against the system because it's outside the system," says Bobby Lee, the CEO and cofounder of BTCC, one of China's three biggest bitcoin exchanges.
"Gold is sort of the hedge against the system, the status quo. Our society is ingrained with the current monetary system of fiat money, where governments issue it, they can put out as much of it as they want. Today's money system, in a very rude way, it's no different to airline miles or hotel reward points."
Like gold, cryptocurrency is not controlled by any one central bank or country. The network is instead run by a distributed and dispersed network of computers who do the back office work required to run the system in return for bitcoins. However, the work to earn 1 bitcoin gets harder and harder, requiring more and more computing power.
The philosophy of bitcoin is that it's a limited digital asset.There's only 21 million bitcoin. The smallest amount you can get is not one bitcoin, you can get fractions of bitcoin. But if you own 1 bitcoin or 0.1 bitcoin you'll forever have that percentage of the world's supply. No one can dilute you. In that sense it's very attractive, it's very unique.
A much higher percentage of drug trades are done in US dollars
However, one thing standing in the way of bitcoin becoming a mainstream investment product is its reputation. The cryptocurrency, originally championed by hacking cliques who flew close to anarchism, has an association with the "dark web" and shady forums where drugs, sex, and other illegal products and services are bought and sold.However, one thing standing in the way of bitcoin becoming a mainstream investment product is its reputation. The cryptocurrency, originally championed by hacking cliques who flew close to anarchism, has an association with the "dark web" and shady forums where drugs, sex, and other illegal products and services are bought and sold.
Pay for drugs, hitmen, all the illegal illicit activities - sounds like you're describing the US dollar. The US dollar is also associated with drugs, drug money, cartels. Sure bitcoin can be used for that, but it can also be used for a lot of good things.