Delusions about rising of Bitcoin are undependable and unreliable because no one knows whether the price will rise or fall or whether Bitcoin will even disappear, so thinks Allister Heath of Telegraph.
He says the claim to know future prices of Bitcoin is baseless and finally ends up disappointing those who “jump off the ship before it sinks, or who decide to sell up just before it miraculously re-emerges.”
As a decentralization of monetary systems, Bitcoin, just like Brexit, serves as a rebellion against establishments and a revolt against fiat money and the state’s duty and role to create money, with its promise of taking the financial power back into the hands of private individuals.
“At its heart, Bitcoin is a libertarian project, a unilateral declaration of independence, a middle-class. The bourgeois revolution aimed at those who would mismanage traditional monetary institutions and ruin the property-owning classes”.
Bitcoin, according to him, is “a kind of Right-wing Corbynism,” an idea projected by people who no longer trust in the central financial system. And “who are worried about quantitative easing, budget deficits and the specter of economic turmoil”. One of the many “good and bad” reasons for the “rush into Bitcoin” is economists’ rally against sound money. Thus using theories that “a little inflation can be good”. Since it allows debt to erode it allows falling of wages more easily, thus reducing unemployment in recessions.
But the excess focus on inflation overestimates the true extent of inflation. Since it focuses more on prices going up than those that are falling.
“Voters, not just in Germany or other countries scarred by notorious episodes of hyperinflation. Loathe monetary debasement in a way that mainstream economists cannot fathom”.
Bitcoin is unlikely to become the new gold as a store of value because of its high volatility alongside unpredictability. Besides the fact that there are competing private monies — namely altcoins — already in the market. However, there are “no monopolies under real capitalism with no regulatory barriers to entry,” he says.