Tag Archives: Virtual Currencies

Can Blockchain Technology Survive Without Cryptocurrencies?

The recent fluctuations in Bitcoin and altcoin prices has resuscitated the debate on cryptocurrencies functioning as a true store of value. After rising about $20,000, this dip in price had seen the most popular cryptocurrency slump to almost $6,000 before rising again and then trading around the $8,400 region as at the time of writing. Rising and falling, and rising again has been one of the usual characteristics of the Bitcoin and cryptocurrency price trend. However, probably due to the increased level of awareness and the literal monetary value of the current price dip, the anti-crypto campaigners found a reason to make loud their criticism of the technology. Delivering his speech in London on February 8 2018, Yves Mersch, Member of the Executive Board of the ECB noted that the wild fluctuations in the value of virtual currencies (VCs) mean that businesses pricing in VCs could find themselves with a large and detrimental gap between their actual price and their optimal price. He explains that when there is considerable uncertainty around how many goods and services an asset can buy in the future, or indeed whether it can be used to purchase anything at all, the asset becomes a poor store of value.

Reference: https://www.ccn.com/can-blockchain-technology-survive-without-cryptocurrencies/