Bitcoin is still not a currency

At its lowest point, Bitcoin fell 18% in today’s trading. Other crypto currencies mimicked the action.

Top tip: cryptos are correlated.

So, a Salvadoran who accepted Bitcoin as legal tender yesterday just saw the value of that ‘currency’ decline between 10-18% in a single day.

That’s quite a kick in the gut for an impoverished nation, Bitcoin isn’t exactly an example of stability.

If someone wants to make a case, that a new owner of Bitcoin tomorrow may then stand a chance to make ‘that 18% back’…….that’s hardly something I’d call a currency.

I’ll keep referring to cryptos as a speculative instrument and not a currency.

September 8, 2021
by Rob Zdravevski

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