Should I Jump on the Bitcoin Bandwagon?

For this week's debate, we tackle the issue of Bitcoins. Two members of the Distilled team discuss whether they'd consider jumping on the bandwagon (please note, this is not meant as financial advice!) 

“there are numerous advantages” “inefficient as a currency”

Tom Anthony, Distilled Consultant 

Tom Capper, Distilled Analyst 

Yes! Crypto-currencies are a fundamental shift away from the established model, which scares people, but there are numerous advantages. There are some down sides too, but primarily they tend to be what people are doing with the funds rather than about the technology.

I do not think Bitcoin itself is necessarily the ‘answer’, but I think something like it will certainly become established in time. I’ve bought some Bitcoin to use as I want to encourage the uptake of crypto-currencies and with people using it, rather than just speculators, I think Bitcoin will still go up more before it is later supplanted.”

No! Though crypto-currencies are fascinating, I couldn’t in good conscience advise anyone to convert their Pounds, Dollars or Euros into Bitcoins, Litecoins or Dogecoins. Conventional currencies and stores of value have some guarantee of their stability, whether it be a precious commodity or the power and wealth of a nation-state. Stability is vital for anything to be useful as a currency - you wouldn’t do business in dollars if you didn’t know roughly how much they’d be worth next week. Crypto-coins have some inherent value in their security and anonymity offering, but this is at present vastly inflated by speculators. This makes them risky as an investment and inefficient as a currency.”

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What are your thoughts on Bitcoins? Going to be investing any time soon? Reply in the comments below.

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