Professor Kevin Dowd is Still Skeptical about Bitcoin - a lot of debate took place
26 December 2014, 18:11
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When Professor Kevin Dowd,
a professor of Economics and Finance at Durham University, wrote a
piece titled “Bitcoin is bust: Why investors should abandon the doomed
cryptocurrency,” a lot of debate took place whether this libertarian and
fierce advocate of private money over government-issued and controlled
alternatives was right.
He says that Bitcoin is a continuing evolution to be endangering its innovative principles. Answering to the question whether he considers Bitcoin as private money, he says that it has certainly been private (up to now) but Bitcoin does not satisfy all the classical features of money that can place it as complete private money.
According to Professor Kevin Dowd Bitcoin is a means of payment but does not function too well as a store of value, and definitely not a universally accepted medium of exchange. At the same time he makes it clear that on balance, he would be happy to regard it as private money wouldn’t want to argue the toss on mostly semantic issues.
BitLicense are Kiss of Death as They Defeat the Whole Purpose of Bitcoin
He says that Bitcoin itself proves that the notion of money is evolving, as it should and according to him he likes the fact that Bitcoin is a privately issued and a (mostly, still) unregulated currency. However, he thinks it is losing its key attractions: its decentralization, its anonymity, and its freedom from regulation.
Nonetheless, he admits that he has tried to address these issues in his papers, presentations and blog postings. However, the hard questions for Bitcoiners like are these key attractions, Bitcoin’s value proposition, intact and likely to remain so? And if not, why continue to use it? etc. have been put by him as well.
He says that Bitcoin is a continuing evolution to be endangering its innovative principles. Answering to the question whether he considers Bitcoin as private money, he says that it has certainly been private (up to now) but Bitcoin does not satisfy all the classical features of money that can place it as complete private money.
According to Professor Kevin Dowd Bitcoin is a means of payment but does not function too well as a store of value, and definitely not a universally accepted medium of exchange. At the same time he makes it clear that on balance, he would be happy to regard it as private money wouldn’t want to argue the toss on mostly semantic issues.
BitLicense are Kiss of Death as They Defeat the Whole Purpose of Bitcoin
He says that Bitcoin itself proves that the notion of money is evolving, as it should and according to him he likes the fact that Bitcoin is a privately issued and a (mostly, still) unregulated currency. However, he thinks it is losing its key attractions: its decentralization, its anonymity, and its freedom from regulation.
Nonetheless, he admits that he has tried to address these issues in his papers, presentations and blog postings. However, the hard questions for Bitcoiners like are these key attractions, Bitcoin’s value proposition, intact and likely to remain so? And if not, why continue to use it? etc. have been put by him as well.
