Pi Network - auto mobile mining: Join now and be one of the pioneers!!

Blog

Bitcoin critics say that the cryptocurrency should never be regarded as a means of exchange because it’s mostly used for speculation. Fundstrat’s Thomas Lee disagrees with this statement, saying that most of the US dollars are used for speculation as well.


Almost 99% USD Activity is Speculation

Venture capital firm Castle Island Venture recently interviewed Tom Lee, Managing Partner and the Head of Research at Fundstrat Global Advisors. In the latest On the Bring podcast, Lee argued that only a small portion of US dollars are used to buy and sell goods or services, while the rest of it is used for speculating on other assets. Thus, it is not fair to attack Bitcoin.

For every dollar that you use to buy a good or a service, it’s used 95 five times to speculate on a financial asset

If we do the math, according to Lee’s logic, only 1% of the US dollars are used for payments.

Moreover, Lee said that the primary use of any currency is to speculate and try to make money on other assets. The Fundstrat’s executive explained that even stablecoins like Libra wouldn’t enjoy the function of a means of payment only. While some may use stablecoins to store value or buy Starbucks, their main goal is to speculate on other assets.

Even traditional markets like real-estate, stocks, and bonds are shrouded by price speculation. Thus, it doesn’t make any sense to point the finger at Bitcoin.

Bitcoin Has Intrinsic Value

During the one-hour interview, Lee also touched upon Bitcoin’s intrinsic value. He said argued that it’s incorrect to say that the cryptocurrency has no such value.

In August, the UK Financial Conduct Authority bashed Bitcoin, saying that it has no intrinsic value and warning investors to exercise caution.

However, Lee said that Bitcoin had real network value, including based on the cost of production paid by miners. Also, the oldest cryptocurrency out there is still at its nascent stage, as only 0.5% of potential owners actually use it. When Bitcoin has a higher penetration, its valuation will almost certainly go up.

Do you find it a problem that Bitcoin is currently used for speculation? Share your thoughts in the comments section!


Images via Shutterstock 

No Comments

Be the first to start a conversation

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Categories

Pi Network - auto mobile mining

Become one of the pioneers!!

Random Posts

DOWNLOAD MY EBOOK FOR FREE

"Your Headline Here How I Made $4947 In 1 Month"

Lorem pretium lorem orci elit nunc imperdiet nec vel sit pretium hendrerit amet nec orci gravida gravida sapien purus massa

Quick Bio About Me

mypicmeLorem proin accumsan accumsan volutpat ut nullam odio eleifend libero quisque ipsum gravida eleifend dolor nunc sagittis venenatis orci eleifend lorem quisque venenatis non sagittis sagittis ipsum nunc.

lacus eleifend pretium eros sed consectetur venenatis praesent sapien consectetur dolor nullam laoreet orci mauris ornare congue lacinia auctor lorem quis quis lacus eleifend pretium eros sed consectetur venenatis praesent sapien consectetur dolor nullam laoreet orci mauris

Resources

  • Resource 1

    Lorem sed praesent quisque auctor libero eros lorem nec praesent accumsan ornare venenatis nullam.

  • Resource 2

    Lorem sed praesent quisque auctor libero eros lorem nec praesent accumsan ornare venenatis nullam.

Random Blog Posts

© 2020 Cryptoracle.info - Crypto News