NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Bitcoin Exchange Gemini Makes A Splash On Nasdaq Debut, Jumping Nearly 50%
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Bitcoin Exchange Gemini Makes A Splash On Nasdaq Debut, Jumping Nearly 50%

Economist Steve Hanke: Bitcoin Is Not a Currency, It’s a “Speculative Asset”

Nick Chong
Nick Chong
1 year ago
3 mins read
bitcoin price

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

If you have read Satoshi Nakamoto’s original white paper on Bitcoin, the likely takeaway is that BTC is a currency. Take the following excerpt from the conclusion of the white paper.

“We have proposed a system for electronic transactions without relying on trust. We started with the usual framework of coins made from digital signatures, which provides strong control of ownership… We proposed a peer-to-peer network using proof-of-work to record a public history of transactions.”

While Bitcoin becoming a currency may have been the goal of Nakamoto and others, it is a goal that has not widely been accepted.

Economist Rebuts Sentiment That Bitcoin Is a Currency

On July 4th, Steve Hanke, an economist at John Hopkins University and foreign exchange trader, said that he doesn’t think Bitcoin is a currency.

“#Bitcoin is not a currency, it is a speculative asset. In order for a #crypto-“currency” to be an actual currency, it must be tied to gold,” Hanke commented, attaching the image below to his tweet.

#Bitcoin is not a currency, it is a speculative asset. In order for a #crypto-"currency" to be an actual currency, it must be tied to gold. pic.twitter.com/yMcRjeQt25

— Steve Hanke (@steve_hanke) July 4, 2020

Many were quick to rebut Hanke’s sentiment.

Phil Geiger, the director of product marketing at Bitcoin financial services firm Unchained Capital, responded with the image seen below. It shows gold’s price versus Bitcoin.

Image

Gold vs. Bitcoin chart shared by Phil Geiger. Chart from XE.com

Like the U.S. dollar and other assets, gold has depreciated massively against Bitcoin over recent years. One ounce of gold can now buy 0.20 BTC while the exchange rate was once one ounce of gold to over 10 BTC.

BlockTower Capital’s Ari Paul noted that “in 1971, people said the same about fiat… this is a weirdly native take on the future of money.” Paul is referencing the fact that the U.S. dollar is the world’s reserve currency, despite the gold standard being formally abolished in 1971.

And Alex Gladstein, the CSO at the Human Rights Foundation, reminded Hanke that BTC is fundamentally superior to many other money-like assets:

“Did you know that if I send you Bitcoin, no one can stop us? That no govt or corporation or oligarchy can change its rules? That no one can alter its issuance? That if properly used it is incredibly hard to confiscate or to pair addresses with people? Why deny when you can learn?”

Soon to Be a Usable Medium of Exchange

Another reason why many don’t see Bitcoin as a currency is because it is somewhat impractical to spend in one’s day-to-day life. Few vendors accept the cryptocurrency. It can sometimes cost upwards of $10 to send BTC. And transactions can take in excess of 30 minutes.

Entrepreneurs in the space are coming up with ways to combat this.

As reported by NewsBTC previously, developer Jack Mallers launched the “Strike” app into beta just last week. In Mallers’ words, Strike is a service allowing “anyone in the world to interact with the BTC and Lightning Network protocols using only a bank account and/or debit card.”

The Lightning Network is a scaling solution that will make BTC usable in day-to-day transactions, both for owners of BTC and merchants.

Featured Image from Shutterstock
Economist Steve Hanke: Bitcoin Is Not a Currency, It's a "Speculative Asset"
Tweet123Share196ShareSend
Nick Chong
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

2m maxi doge (1)

Maxi Doge – Πάνω από 2 εκατομμύρια στο Presale – το νέο Dogecoin με προοπτική 100x

Μήπως έφτασε η στιγμή που το Dogecoin (DOGE) θα χάσει τα πρωτεία του; Αυτό τουλάχιστον δείχνουν τα νούμερα, αφού το...

Ανθή Ντόνκοβα 7 hours ago
Ethereum

Is Ethereum Currently Undervalued At $4,700? NVT Reading Suggests So

The latest on-chain data shows that the second-largest cryptocurrency by market capitalization, Ethereum, may be currently undervalued. Having witnessed a...

Opeyemi Sule 7 hours ago
Aave price

AAVE Price Reclaims $320 As TVL Metric Shows Positive Divergence — What’s Next?

After hovering around the $300 mark at the start of this week, the Aave price appears to have finally broken...

Opeyemi Sule 11 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Bitcoin

Bitcoin Flips Key Support, Bulls Now Target $117,000

Godspower Owie 1 hour ago
Bitcoin

Here’s How The Bitcoin Price Macro Correction Could Play Out Next

Scott Matherson 3 hours ago
Crypto

Crypto Pundit Gives Reasons Why Investors Should Be Extra Bullish On XRP

Scott Matherson 6 hours ago

Premium Sponsors

Press Releases

  • ドージコイン 今後の展望:ビットコイン提携とETF開始で次の暗号資産の巨人となるか

    ドージコイン...

    14 hours ago
  • 鯨が一晩で4,000万XRPを売却、リップル 今後は3ドルのサポートを維持できるか

    鯨が一晩で4,000万XRPを売却、リップル...

    14 hours ago
  • 暗号資産トレジャリーの苦境とQ4に狙う仮想通貨プレセール

    ...

    15 hours ago
  • 10月に上昇が期待される仮想通貨おすすめ6選

    ...

    15 hours ago
  • 新しい仮想通貨が投資家を最速で億万長者に導く ― 既存の「買うべき仮想通貨」を超えて

    ...

    15 hours ago

Newsletter

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.