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Bitcoin continues to generate debate. On El American Live, co-editor-in-chief Vanessa Vallejo talks with economists Juan Fernando Carpio and Edgar Fernandez about whether Bitcoin will be the money of the future that allows for a freer world or if it is simply a bubble that people should avoid because of its volatility.
For Carpio, Bitcoin is the greatest economic invention in six hundred years, arguing that it would become the money of the future. He stressed that like other resources, the currency has risks, but it also has benefits.
However, the economist explained that it is not a currency for investment, but rather something that can be used for day-to-day transactions of citizens. Furthermore, he insisted that it has nothing to do with pyramid businesses.
“I wouldn’t tell someone to have their savings in Bitcoin, because it’s not for investment. It is a form of money that we use win-win. It has nothing to do with pyramids and it’s going to gain more value as people gain confidence.”
A different view from Carpio’s is held by Edgar Fernández, a finance specialist, who believes that we are far away from claiming Bitcoin as real money. Mainly, he considers that it is not yet a currency that is used on a daily basis.
Money of the future?
Edgar Fernández commented that the viability and stability of Bitcoin depend mainly on the fact that there are constantly citizens interested in making transactions. Likewise, its value, says Fernandez, depends on that demand among citizens.
“It depends on someone being constantly interested in buying Bitcoin. It has the same probabilities of risk and success. It is not a store of value because to be one it should be as less volatile as possible and right now Bitcoin is the most volatile thing there is.”
Finally, both agreed on the benefits that Bitcoin could have on society. Among them, they highlighted the possibility of having a currency that does not depend on the state or central banks. But, they pointed out, one must wait to see how it behaves in the future.
“If in the future it becomes a currency, it can be a revolution, but it is not now. Bitcoin can be a very good thing, but I prefer others to be at the party and when it is really good, I will enter,” said Edgar Fernández.