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Bitcoin: A viable currency?

U-T EconoMeter panelists consider this cybercash alternative

Roger Showley, U-T SAN DIEGO

Friday, December 6, 2013

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Kelly Cunningham, National University System

Answer: YES

As fiat monetary systems (especially including the U.S. dollar) continue to debase national currencies, alternative forms of money become more appealing as standards of exchange. This is particularly significant as the U.S. dollar loses its monopoly power as the world’s reserve currency. Virtual currencies may legitimately serve as "legal means of exchange" with significant advantages as payment networks having vast utility for their currency units. However, a major drawback in Bitcoin currency is not having intrinsic value. Unless the alternative currency can be directly exchanged for gold, silver, oil, “Beanie Babies” or something, it is more speculative asset than currency.