Bitcoin is Not a Store of Value Due to Volatility Says Bank of England (BOE) Deputy Governor
Bitcoin is surely controversial, there is no discussion about that. While some people call it digital gold, others call it a scam. While we can attest its value, this is far from being a popular opinion among people who do not know BTC very well. Now, the deputy governor of the United Kingdom’s Central Bank has entered the discussion.
According to Dave Ramsden, cryptocurrencies are simply too volatile to be a way to store value. He affirmed this during a recent interview with CNBC, which was published today, April 30.
The deputy governor of the Bank of England reminded the interviewer of a study made by the U. K. Financial Policy Committee around a year ago. In it, it was determined that the high volatility of cryptocurrencies prevented them from becoming an efficient way to store value.
At the time, the committee also affirmed that cryptos are not even a practical medium of exchange since transactions cost a lot of money, so they were neither “digital gold” nor money.
Now, Ramsden told the media outlet that cryptocurrencies fail to meet the most basic definition of currencies. They are small in the size of their market and also do not pose any kind of threat to the financial stability of the world, meaning that they are less “disruptive” than it is often affirmed that they are.
Even a year after the original reports, he stands by their decision. The crypto market has decreased in volatility a lot, but this does not seem to have any effect on his stance.
Another employee of the Bank of England, Huw van Steenis, has also affirmed recently that cryptos fail the basic tests to be considered money.
Despite The Opinion Of The Deputy Governor, The World Is Accepting Bitcoin
The truth is that despite what the governments say, people are accepting Bitcoin as their payments. Crypto payments are getting increasingly popular now and even Corporate Traveller, the largest travel management company in the United Kingdom, is now accepting them.
Even some central banks in countries like Afghanistan and Tunisia are wondering about issuing Bitcoin bonds, so the change is about to come.
What matters, in the end, is how used BTC is, not what people are saying about it. Because of this, you can bet that most experts will change their minds after BTC is widely used.