Tags: Sorkin | skeptical | bitcoin | power

Bitcoin: The 'Paris Hilton' of the Currency World?

By    |   Tuesday, 26 November 2013 08:56 PM

Like many financial commentators, New York Times columnist Andrew Ross Sorkin doubts that the bitcoin will ever become a legitimate currency.

The opening line of a recent column expresses his skepticism: "How can bitcoin be anything but a passing fad?"

He notes that the currency, which traded at $960 Tuesday, can easily fluctuate more than $100 in a single day – not a harbinger of stability.

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"Which merchants in their right mind are going to accept a currency that seemingly changes its value in wild swings every other day?" Sorkin asks.

In addition, there is no central bank or clearinghouse to regulate the currency.

Bitcoin does have value "in the same way that anything that is rare can be considered valuable," Sorkin said. "Like baseball cards. Or a Picasso. That’s because there are only so many of them."

The number of Bitcoins is slated to be capped at 21 million.

Peter Leeds of the Penny Stock newsletter offered an amusing take on the bitcoin to Sorkin. "In a matter of months you won’t be hearing about it," Leeds said. "It will go the same way of Paris Hilton. People will move on to the next thing."

Raoul Pal, a former hedge-fund manager and founder of the Global Macro Investor, a macroeconomic research service, recommends that investors treat the bitcoin like a lottery ticket, according to The Wall Street Journal.

He acknowledges the bitcoin may ultimately be worthless. But he also sees a possibility that it will take over "at least part of gold's traditional role as a store of value," the paper says.

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Like many financial commentators, New York Times columnist Andrew Ross Sorkin doubts that the bitcoin will ever become a legitimate currency.
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2013-56-26
Tuesday, 26 November 2013 08:56 PM
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