GoldMoney's Andy Duncan talks to Jon Matonis of the Bitcoin Foundation
who is also a contributor to Forbes Magazine. They discuss Bitcoin's
latest price spike and whether crypto-currencies are a credible
alternative as a medium of exchange.
Though the price for
Bitcoins has risen from $15 to $95 at the time of the podcast, Matonis
does not think that it is a speculative bubble. With a fixed supply of
Bitcoin and rising demand - in part due to fears related to Cyprus --
surging prices are only logical. As there is no futures market for
bitcoins yet, there is no leverage, which makes Bitcoin also suitable
for investment purposes.
They discuss whether Bitcoin could
become a serious rival to precious metals when it comes to alternatives
to national currencies. He points to the complimentary nature of
physical bullion and Bitcoin. While Bitcoin has advantages in the
digital world, nothing beats the security of tangible metal as it is not
reliant on the existence of electricity and internet connectivity.
Matonis
sees a bright future in crypto-currencies and especially values its
possible impact on capital controls and taxes. For Bitcoin the important
question will be whether it will be introduced by big merchants and
whether governments will impose regulation against such acceptance.
This podcast was recorded on 28 March 2013.
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