Bit coin or Bit con?
You might be able to tell from the heading of this article that I am a bit sceptical about the rise of technological cryptocurrencies such as Bitcoin. Yes, I know that there are some so called benefits, but I am not sure that the benefits are going to outweigh the drawbacks in the long run. Coupled with this, it feels somewhat like a ‘phony’ currency.
So, it was of great interest to read that even Bill Gates who is one of the leading technology gurus of our time, cast a shadow over the cryptocurrency. His gripe is that because there is ‘anonymity’ in its use, the ability of Governments to tackle illegal activities such as money laundering, tax evasion and drug trafficking is significantly diminished.
Right, so if Governments are losing control on those issues, what other important issues are they going to lose control over in the future? Could an increasing reliance on cryptocurrency one day create new financial madness that leads to another GFC? Maybe, maybe not. (In Dec 2017, 1 Bitcoin was worth about $US18,000 and only 6 months later it is closer to $US6,000). Either way, if Bill Gates is expressing a concern about cryptocurrency, then we probably should all take notice and proceed with great caution.
Reference: “Bill Gates says cryptocurrency is a rare technology that has caused deaths in a fairly direct wayâ€, Becky Peterson, Business Insider Australia, www.businessinsider.com.au, February 2018.
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