At this point in Bitcoin’s journey, we’re now getting central bankers attempting to trash bitcoin as a money. See Mark Carney’s comments in this speech at Bloomberg here:
Cryptocurrencies are "failing" in the role of money, Mark Carney says in speech at Bloomberg https://t.co/amIq5WBdXm pic.twitter.com/6JuvdRP0dn
— Bloomberg (@business) March 2, 2018
Carney trots out tired arguments that have been addressed time and time again. But let’s just pick them apart anyway:
Bitcoin volatility and “poor store of value”
Bitcoin’s most ardent supporters would not try to make you believe that bitcoin’s volatility is low and it’s a “stable currency for use right now”. This entire case is about the long run. First, hyperbitcoinization. Then, regular use as a real currency.
And while we’re on the topic of volatility, why don’t we instead drag it out over a longer time period?
So you can see from this chart that at about August 2017, the price went above 2,000 GBP and in early March 2018 as I write this, it’s around 8,000 GBP. So basically, if you have bought before August 2017, the worst you could have done is 4x your money. If you bought in years ago, you’re absolutely laughing.
This guy should not be one to throw stones
So you can see from the price chart above that anyone who has held bitcoin for a long period of time has done very well in GBP terms. How about the flip side? I’ve made up a quick chart to show how terribly the GBP has gone against bitcoin.
Oops. Mark Carney’s money hasn’t exactly done that well, has it? Better check the scoreboard next time.
Mark Carney makes a comment referring to the saying “Those who don’t know history are doomed to repeat it”, as though this is an argument against a money modeled against gold in it’s supply characteristics. This is ignoring that the world operated for thousands of years on gold, and the classical gold standard era had very high growth rates.
If anything, having these elitist central bankers who believe they need to manage the money will lead to us repeating history: By having continually declining value. It’s time for a change, a move towards a sound money that is truly scarce.
In the end, this is yet another case of Old Man (Carney) Yells At Bitcoin: