com Print *** Price/Volume Excluded - Outlier Detected Bitcoin Social Media Feeds Website Widget. Now, these currencies have a long way to go until they could represent an international and stable marketplace. I cannot tell you how the dollar will perform over the next 30 years, nor can anyone else with any certainty. So, as I donât like to speculate on any one specific company stock, I also wouldnât want to speculate on one specific currency currencies like bitcoin. While I have tremendous respect for the intellect and vision of many of the critics of Bitcoin, I also feel that they are missing the point. (JUSTIN TALLIS/AFP/Getty Images) Bitcoin is not a company in the traditional sense, and comparing it to a company is not appropriate. Airline miles, hotel stay points, and credit card points are digital currencies. js >Error has occurred. Very few young people I know carry around cash. Bitcoin Might Be A Bubble But Digital Currencies Are Not Opinions expressed by Forbes Contributors are their own. The future will be paved with disruptive technological advances, as the past hundred years have been, and we should embrace and drive these developments, not cling to bygone notions of currencies. While credit cards are tied to a dollar, no actual currency changes hands in most situations. Merely a number of people promise that there is money somewhere. First, think about how you buy and spend money today. So much value in fact that the IRS has taxed airline miles in a few instances as income (although their current position is that you donât have to report them in most instances today). Please reload this page and try the operation again.
Many of them are not dollars, but rather a company-directed digital currency that can be redeemed for value, but only so long as the company can fulfill its promise. If you could predict how any currency would move with certainty, you wouldnât have to work anymore. Currency trading is a large industry and even the best suffer losses and deal with constant uncertainty currencies like bitcoin. They have both attacked Bitcoin saying that itâs a âbubble,â comparing it to many Dotcom companies that were really shell companies offering little value and not âbacked by anything. Essentially, it would be a way to diversify government risk by consolidating currencies into one uniform or international measurement. And I will just say it, Professor Stiglitz is wrong. Bitcoin has experienced a surge in value. They are not backed by any government, gold, silver, or cash reserves. But when people say these new forms of currency are a bubble, it really ignores the fact that society has already adopted digital currencies as a part of its daily life. This will no doubt scare governments as it removes one of the main control and power mechanisms that governments have had for centuries: control the pocketbooks, control the people. However, the surge in attention and value has also attracted a number of critics, including Vanguard founder Jack Bogle and Nobel Prize winner Professor Joseph E. First, digital currencies have already been adopted and outlawing them would set the U. Could it also come crashing back down to $100. We use digital currencies on a daily basis and younger generations are growing up with digital currencies as the norm while physical dollars are more of an outlier. Instead, they are promises that the currency has value, and they do have value. But, markets are starting to come around to the idea of Bitcoin as NASDAQ plans to have a Bitcoin future in first half of 2018.