Professor William N. Goetzmann was interviewed some time ago by Yale Insights, about what he thinks of cryptocurrencies. The Yale professor who is a teacher of Finance and Management Studies expressed his opinion on Bitcoin mostly and in today’s bitcoin news we will read what he thinks.
According to the published interview:
‘’Bitcoin’s volatility underscores the challenge of establishing the trust needed for a widely useful currency, but the proliferation of cryptocurrencies also shows that traditional, government-backed currencies don’t address everyone’s needs.’’
Goetzmann said that Bitcoin is not really the best store of value simply because its value is constantly changing. It depends on who you ask but Bitcoin’s volatility could be the worst enemy of the number one cryptocurrency according to the professor. He also argued that Bitcoin cannot be as what some like to call it ‘’the digital gold’’ yet. Goetzmann says:
‘’There are a few basic things any currency has to fulfill. It has to be a store value.[…] It has to be a method of transferring value. With Bitcoin, because it fluctuates so much, it’s not a particularly good store of value. You could put in $100 worth today, and it could be worth $25 dollars two weeks from now. Until it overcomes that particular feature, it’s not a great currency.’’
He was only commenting on the negative sides of the cryptocurrency such its volatility but it seems like when the prices go up, nobody talks about the volatility at all. Users use the time to send and receive some money in order to profit from the fast-pacing bull market. Of course, there are multiple arguments that support the idea of bitcoin always remaining volatile because, in fact, the volatile nature is good for traders.
Another interesting aspect of Goetzmann’s views is that Bitcoin represents the old way of doing business. Before paper money began printing, people traded their goods and services without actual money who he thinks are much like the blockchain technology. In a way, it’s like going back in the time before money even existed at least the kind that can now be transferred by a physical process.
At last, Goetzmann seems to have a neutral stance on cryptocurrencies but still thinks that they are a speculative investment at best.
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