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Daily Review: Why Cryptocurrencies Are Failing to Fulfill the Role of Money

An increasing number of institutions and regulatory bodies are weighing in on cryptocurrencies – their role, impact, and potential. While opinions vary and sometimes change, the regulatory tide is inevitable and already in designs across nations, with many having working frameworks in place.

The Bank of England is one of the latest institutions to review the pros and cons of cryptocurrencies within the vision on the future of money. A speech by Mark Carney, Governor of the Bank of England, offers three important reasons why cryptocurrencies are presently failing to fulfill the role of money.

Pick #1. The Future of Money

How well do cryptocurrencies fulfill the role of money? The short answer is they are failing.

Poor stores of value

Cryptocurrencies are proving to be poor short-term stores of value. Over the past five years, the daily standard deviation of Bitcoin was 10 times that of the sterling. And Bitcoin is one of the more stable cryptocurrencies. Indeed, the average volatility of the top 10 ...

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