Weiss Ratings: Bitcoin has failed in its task to become a currency
According to Weiss Ratings, bitcoin has failed in its task “P2P e-cash” and thus failed the mission as the currency.
Sadly, #bitcoin has ultimately failed as a currency – people mainly use it for speculating. This is not BTC”s fault, though. #crypto #cryptocurrency #xrp #altcoins
— Weiss Ratings (@WeissRatings) August 22, 2018
The Agency a few months ago launched rating crypto-assets, where virtual coins are distributed according to the criteria of real use and service the needs of people. At the same time, Weiss Ratings looks optimistic for the future of crypto-assets, seeing them as a good addition to investment portfolio. In their official blog noted:
“Crypto-currencies – an asset with low correlation with traditional asset classes: the S&P 500, dollar, international, bonds, commodities and gold.”
There are many reasons for the “failure” of bitcoin is in wide use as the intermediary payment. One of them is the highly volatile price. The other – very few merchants accept VTS-payments, and present it as a novelty, not a regular option.
The use of low VTS made other altcoins to look for solutions that could make the crypto-payments cheaper and easier. While true adherents of bitcoin argue that Bitcoin is used primarily as a repository of value, and it is not necessary to perform the functions of mediator payment.
It’s a paradox – because hash rate bitcoin reaches record values. However, mining has little to do with the intensity of use of VTS in everyday life. Mining and speculation on the exchanges is a way of earnings, not daily spending on small expenses. Most miners rarely sell their coins to cover the costs.
In addition, the PTS has no real economy except for niche products: expensive real estate, collectible cars and the like. Its a limited offer still need to somehow link with the real world. Due to artificial shortage and deflating entity (inflation – rising prices, deflation is falling), bitcoin differs from Fiat money.