Can Bitcoin be considered as an asset?
Dec 27, 2017 Posted / 5515 Views
The technology used by Digital currency is relatively new, yet the underlying concept behind these is quite old. We are not yet sure about the history, founding thoughts and simulation behind the origins of bitcoin and other cryptocurrencies. However, fundamentally these are considered as digital assets of value whose monetary worth is determined by their efficacy as a method of exchange. Nonetheless, the subsequent big question of bitcoin’s existence is established on the fact whether it can assist in credit transactions, and become the substitute of contemporary money and the cohesion of future money.
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Lastly, it is pertinent to ascertain if the market vulnerabilities for Bitcoin can somehow be sorted and whether the latest volatility in bitcoin prices is kin to any hoarding of the cryptocurrency. It is practical to calculate its velocity, relative to cash, as it might become defining criteria for terming Bitcoin and other cryptocurrencies as an asset. However according to many analysts who have tried to evaluate all of these pointers for terming Bitcoin as an asset, remark that it has not yet arrived at the point where it can be defined as a medium of exchange, like cash, to smooth the progress of transactions.
Any form of monetary transaction or asset has to find certain criteria or measure, in categorize it as a method of exchange. In a more natural example we can compare it to the ageing of the blue cheese, which requires considerable atmospheric controllers in order to fine out. If we state that any form of Money is substantiated by mass adoption it will have to facilitate in the businesses and market enterprises. However there are some obvious limitations with money changes value, through economic inflations and deflations.
We need to know that such modifications and adaptations do not happen instantaneously rather they need definite plodding. Market transactions take place gradually, and currency, as the unique vehicle of bartering has to pursue a definite suit.
According to different price index platforms, the last few years have witnessed a significant surge in the price of cryptocurrencies. Many analysts define that there is apparently a concern emerging out in this hike. But more prominently, the question still looms in the comparative long-term analysis, which means that the Bitcoin have the consistency to pass the “criteria” for money. Just be searching a trend on the search engine you find that there are graphs and statistics generated by various researchers that compares the change in the value of cash to that of bitcoin. In fact, between 2013 and 2015, bitcoin’s values pretty much changed with that of cash, obviously with the changes accentuated. Nonetheless, we need to find out if the story ends here or not.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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