Bank of England Governor says Bitcoin comes to its downhill

20 February 2018

Mark Carney, Bank of England Governor, speaking at a private meeting held at Regent’s University in London, made a statement that the time for Bitcoin is running short as the cryptocurrency failed to prove being valuable for markets and consumers. He said that the cryptocurrency does not meet two major criteria: Bitcoin is not an exchange medium, nor a store of value.

Given the high volatility featuring the cryptocurrency market, retailers will unlikely be supporting Bitcoin as a means of payment to enable customers to purchase goods and services, even though some websites on the Internet are offering their users Bitcoin as a payment method. This makes Bitcoin very far from being a good exchange medium, while price fluctuations makes the meaning of the ‘store of value’ inapplicable to it either, as investments are usually made into stable and reliable instruments without massive price movements.

Earlier this year Stripe payment provider announced that it will discontinue processing transactions in Bitcoin by April 23, noting that accepting it makes no sense. Steam video game marketplace also declined Bitcoin last December mentioning high fees and volatility in the market.

Carney’s point of view is supported and kept to by a number of outstanding figures in the financial and political area, including UBS Wealth Management’s chief economist Paul Donovan, who spoke last November that Bitcoin has no future to become a true currency considering a series of ‘fatal’ drawbacks.

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