Bitcoin is ‘unsuitable as a means of payment’ and should be seen as a highly speculative investment. This is what investment strategist Ralph Wessels said in front of the camera of ABM Financial News.
The investment strategist looks at the pluses and minuses of bitcoin and tries to answer the question whether the cryptocurrency should be seen as a future means of payment or more as an investment.
“The longer bitcoin exists, the more likely the cryptocoin will remain among us,” said Wessels. “Although bitcoin as a means of payment offers some advantage in large international transactions, most arguments speak against the cryptocurrency as a means of payment,” he added.
“It is inefficient when we look at the purchase, time and cost of a transaction, electricity consumption [since when it is financial concern? – ed.] and conversion if prices are not displayed in bitcoin. Another point that is underestimated is that a decentralised monetary system affects the sovereignty of countries and is therefore not in their interest. Also, bitcoin does not have a stable price level and it will only decrease if we start using the crypto more,” says the investment strategist.
“Finally, history shows that both a decentralized and rigid money system, such as a possible Bitcoin standard, more often lead to recessions. That would be at the expense of our prosperity”, says Wessels.