The Governor of the Bank of England said on Monday that bitcoin has “failed” in its ambition to be accepted as a legitimate currency, in comments widely reported after Reuters ran with the story.
Answering questions after speaking at a private event at Regency University London, Mark Carney said: “It has pretty much failed thus far on…the traditional aspects of money. It is not a store of value because it is all over the map. Nobody uses it as a medium of exchange.”
Business Insider tied Carney’s comments to those made by the payment provider startup Stripe, which intends to stop processing bitcoin payments in April. Stripe’s management cited the same two apparent flaws in bitcoin—its volatility and its lack of over-the-counter utility—when they said in January: “Empirically, there are fewer and fewer use cases for which accepting or paying with Bitcoin makes sense.”
The Times reported Carney’s comments alongside the news that the “Bitcoin rollercoaster heads up again”. The newspaper reported that bitcoin’s price rose above $11,101 for the first time since January at the weekend, and overcame a dip on Sunday to bounce back to more than $11,000 on Monday.
Carney, who presides over England’s centralised banking system, was also quoted as saying that blockchain technology may still prove useful as a way to verify financial transactions in a decentralised way.
The No Bull Investor has requested the full transcript of Carney’s speech.
The No Bull response: When the man responsible for a failing currency says that a cryptocurrency has failed, it’s worth paying attention. Has Bitcoin failed as a currency? There’s plenty who would disagree but we should recognise Bitcoin’s weaknesses. Segwit and Lightning are due any day now and will address many of the arguments against Bitcoin.
It’s also worth noting that other cryptocurrencies such as Monero, Litecoin and even Ethereum are being used on a day to day basis both as a store of value and for purchases. Here at The No Bull Investor, we believe in well-diversified portfolios, and if you’ve diversified correctly, you’ll see both the truth in Carney’s words and their boundaries.