KfW: Bitcoin is a speculation object and “ecological Disaster”

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The Kreditanstalt für Wiederaufbau has been illuminated in a study of Bitcoin and its value as a currency.

Crypto-currencies are becoming increasingly important in view of the banks. It is not only since the creation of the “Bank tokens” XRP are interested in commercial and Central banks and, increasingly, for the possibilities of digital currencies. But crypto-currencies are in the position to act on a global scale as a means of payment?

Bitcoin: A Speculative Object

Dr. Sebastian Wanke from the credit Institute for reconstruction doubts. In his analysis, “The value of a bitcoin: more competition in payments” Bitcoin and Altcoins not on the Status of a speculation object.

Wanke argued that Bitcoin satisfies all of the functions expected of a currency. Although it is suitable in principle as a means of payment, but the process is complicated and it is also unclear whether the technology of Bitcoin and Altcoins to be scalable enough to with “a significant payment” to cope. Much worse it is to stagger to the other two functions, the need to meet the money: its functions as a store of value and unit of account. Bitcoins volatility disqualifying him as a safe store of value.

However, the limitation of Bitcoin to 21 million units, and potentially resulting in Deflation of its value in Wankes eyes is the reason why Bitcoin is also less strong price fluctuations, not as a unit of account could act. An increasing adaptation would further reinforce the Deflation, and a Bitcoin-based economy similar to paralyze, as it would be with Inflation.

“Even if Bitcoin is so as a substitute for other crypto currencies – the confidence of the economic entities should enjoy (although it offers no guarantees), it may be due to its construction, no money, and will not therefore be used in the future in greater style than money”,

so Wanke.

“An ecological Disaster”

But even if Bitcoin would be designed differently, could he not convince Wanke of its suitability as a currency. Not limited to crypto-currencies would be unclear criterion according to which your gift should be made, because of the lack of a clearly defined economic area. Furthermore, Wanke sees the Lack of a Central instance as a security Malus, not a bonus. Of course, the never-ending criticism of the energy consumption of Proof-of-Work-method . This is as high as the daily requirement of Ireland. This make Bitcoin, given the low number of transactions, to an “ecological Disaster without an Emergency”.

Crypto currencies as a healthy competition

However, crypto-currencies for Wanke have their raison d’être. So, any by you

“healthy, additional pressure on all those in the international and still expensive payments,”

what are you doing in this field any viable Alternatives.

Furthermore, it is the Blockchain technology, with the now Central banks ogle, of the can be expected in the future, a new impetus.

BTC-ECHO

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