Steve Forbes highlighted that Bitcoin is way too unstable to be used as money. He gives a great example: ‘Imagine if you had taken out a mortgage worth $250,000 in Bitcoin last March; you’d owe the bank $2 million today’!
We need to remember that the supply of money must expand to meet the needs of a growing economy, and as we know, the amount of Bitcoin that can be “mined” is fixed.
However, if we tie the Bitcoin to gold or the Swiss franc, this could work if their supply could grow as economies grow.
Since March the price of Bitcoin has jumped almost eight times to $40,000, and optimistic predictions indicate growth to $100,000.
There is no surprise that people don’t trust governments to manage their currencies. However, there is a long road ahead before we will talk about Bitcoin and other cryptocurrencies to be substituted for the dollar.