Steve Forbes – American publisher has attacked bitcoin’s fixed supply saying this feature actually curbs the ability of the crypto to “meet the needs of a growing economy.” Forbes insists that money only works best if it has a stable value. He also argues that bitcoin cannot replace the dollar because it is presently too volatile to function as money.
According to Forbes, cryptocurrencies can only challenge existing money if their value is tied to that of gold or the Swiss franc currency. However, Forbes concedes that the crypto is “now seen as a respectable investment class.” He adds that “financial institutions are adding it to their portfolios.”
“People are piling in because of a lack of faith in government fiat currencies. The Federal Reserve and other central banks have crushed interest rates and are printing unimaginable amounts of money to pay for Covid relief measures and to stimulate damaged economies.” – Forbes says
Forbes also acknowledges that some enthusiasts do see bitcoin as “the new gold” while others believe it will “eventually replace the dollar.”
Some of these steps, which are inflationary, could be the possible reasons why bitcoin has now “become the darling of investors.
Nevertheless, the thinks this is not about to happen because of how bitcoin’s volatility can potentially affect the contract system. The publisher uses the example of a housing mortgage loan to illustrate why cryptocurrencies cannot be used in contracts which he says “are essential for an economy.” Forbes surmises that no one in “their right mind would sign a long term contract based on bitcoin.”
<Source: Bitcoin News>