There is so much talk about cryptocurrencies and Bitcoin it makes my head spin. One day it is up, the next day it is down and this is the reason why cryptocurrencies will not work as a replacement for real money.
The value of Bitcoin has risen by 50% in the last 3 weeks.
Why would I use Bitcoin to buy anything when in another 3 weeks it may be worth 50% than it is today? Best hang on to it, its value may rise even more.
Unless Bitcoin and other cryptocurrencies stop rising, people will not spend them. They will hold them and therefore they are useless as a currency.
When Bitcoin and others fall in value, people don’t want to spend them because they are worth less, and it may go up next week. Once again, they will hold and not spend.
Bitcoin is not a currency. At least not one you can spend.