Bitcoine has no chance to replace the dollar, the Wall Street Journal correspondent James McIntosh believes. The possibilities of crypto currency are too limited, and this prevents its wide distribution. Success bitkoyn can only be achieved as an alternative to gold, says the author of the column.
Crypto-currency without borders, which no government can control, and which allows anonymously to conduct online transactions - at first glance, this idea seems wonderful. However, in fact bikkoyn little reflects this utopian concept. The most popular crypto currency in the world will never be able to replace US dollars, I'm sure the correspondent of WSJ James Mackintosh. The main problem, in his opinion, is how bitcoin works. With its help, you can conduct a very limited number of transactions, in addition, it takes a huge amount of electricity. "If the price of bitcoins depends on whether it can replace the dollar, then its value is $ 0", - says Mackintosh.
According to Gresham's law, the worst money is displaced from circulation by the best. People will be more willing to spend inflation-prone money issued by the state, and bitkoyny will prefer to save. If no one will pay with bitcoins, then they will never become a real currency.
Provide bitkoyn real value can only two scenarios. The first involves using crypto currency for illegal money transactions. However, banking analyst Dan Davis of Frontline Analysts notes that in the world of crime, prices are usually set in dollars, not in bitcoins. If some criminals get a crypto currency, then they convert it into the usual one.
According to Davis, even if we assume that the entire drug trade will be transferred to the block, the real price of one bitcoin will be only $ 571 (about 6 times lower than the current market rate). However, for crime, bitkoyn can become a convenient currency, even despite all the restrictions and the need for conversion, since laundering of ordinary money is much more expensive
The second scenario for the appearance of Bitcom's own (independent of exchange speculators) cost involves the use of crypto currency as an alternative to gold. "Digital gold" will retain its value even if the state currency is hyperinflationary or completely deprived of its purchasing power. However, this requires that all recognize the "internal" value bitcoin, as it is recognized in relation to gold.
Mackintosh agrees with the head of the bank J.P. Morgan Chase Jamie Dimon, who compared the popularity of crypto-currencies with tulip fever in Holland of the XVII century. Bitcoin expects one of the extremes - or success in replacing gold as a universal measure of value or a complete failure. Turning bitcoin into the currency of the criminal world is unlikely to satisfy the enthusiasts of the detachment. The fact that while the "internal" cost bitcoin is zero, and explains the high volatility of the crypto currency. Last week, the bitcoin rate, approaching $ 5,000, collapsed to $ 3,000 because of Daimon's statements and the decisions of the Chinese authorities to put the national market of crypto-currency under full control. And at the beginning of this week bitokoyn "grew" to almost $ 4000.
If the future course bitkoyna predict is difficult, the fate of the majority kriptovalyut already roughly defined. Experts of the analytical company Never Stop Marketing predict that in 1 to 2 years only 5% of the country's crypto currency will remain on the market, which will create new types of business for trillions of dollars. The other 95% will not cost anything.