As Bitcoin propels to new highs we can expect to hear more and more comments from various people within finance and economics -- typically pointing out the great dangers about the cryptocurrency.
Now, the head of the Swedish central bank (Riksbanken) made a funny comment warning about Bitcoin:
"But Bitcoin is not money the way Riksbanken sees it, but is rather like pricing medals or paintings or something like that. We are not talking about ordinary people's everyday transactions or what you have in your wallet", says Stefan Ingves.
"That people buy and sell something, that's something you also do when it comes to oil, commodities, pork bellies and other things on the markets in Chicago, but then everyone participates at his own peril."
Sure, Bitcoin (or some other coin) is not used in everyday transactions very much yet. But does that imply that it is not money? By the same token, wouldn't that also disqualify physical gold - the historical GOLD standard of money?
The truth is, Bitcoin and other cryptocurrencies have more of the characteristics you want to see in sound money than the fiat currencies have, which the central bankers consider to be "real money". Interesting times lie ahead.
Stockholm, 2017-12-08