04 Mar Bitcoin – it’s not a currency, it’s not a capital asset….so what is it?
Key Points:
- Digital currencies and blockchain technology may have a lot to offer – but that does not mean Bitcoin will be it.
- Due to extreme volatility, high transaction costs and slow processing, Bitcoin does not cut it as digital cash.
- But it’s not an asset generating cashflows either, which makes it impossible to value.
- Key for investors is not to invest in something if you don’t understand it and to recognise that just because Bitcoin has surged in price does not prove its worth.
