Some of you will have heard of Bitcoin and the general topic of cryptocurrencies. Let me offer a personal view. Note: I have a long history in software, worked for one of the first banks to consider a cryptocurrency and have been paid to spot trends. Oh, and there is a also a connection to real estate investing. After all, this is Property Investor News.
Defining Terms
I took a look at the dictionary for ‘currency’. There are two definitions which matter here. The first is ‘a system of money in general use in a particular country’. Crypto generally implies no country. I do not think the country element of the definition matters much. Let’s ignore the country border issue and press on.
The second definition is less about ‘money’ and more about relevance. To quote: ‘the fact or quality of being generally accepted or in use.’
In both definitions, the core element is general acceptance and wide use. Most people accept and use the currency for it to be of universal value.
Gold is rumoured to be a stable store of value. That something worth X ounces of gold 100 years ago is the same price today when paid for with gold. Many believe this even if the facts are not always in alignment. Some of the time the math does work. Other times we just have the believers operating on faith. We call them gold bugs.
