Future of Bitcoin: Currency or Transactions?

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July 24 (Bloomberg) -- Bloomberg Businessweek’s Brendan Greeley reports on how Bitcoin is used on “Bloomberg Surveillance.” (Source: Bloomberg)

I think something is happening around bitcoin.

When we saw the bubble at the end of last year that was speculation on the asset value of bitcoin.

When you are seeing now, i think, is a very small amount of confidence in the possibility of bitcoin as a means of transferring money.

One indicator -- i talked to someone this morning who said that at the bitcoin you are now seeing x goldman traders showing up.

Bitcoin is getting boring.

We have an illustrious desk here this money.

Brendan greeley doesn't believe in bitcoin, howard ward doesn't believe in bitcoin.

Scarlet is never stated -- i'm not big into it.

Let's think in a platonically perfect bombardier --bitcoin world, the transaction costs would be zero.

That is not going to happen.

Volatility has been very high.

It will be high for a long time.

When you add on basic services that prevent you from having to hold bitcoin, if you have to traded in, you have to i a kind of insurance, that brings transaction costs up.

It is significantly greater than zero.

Probably also significantly greater than the 2.5 you take mastercard -- brendan, you talked about a great nobel laureate and his analysis of the systems.

Is this a legitimate system, howard ward?

Time will tell, tom.

I am very skeptical.

We call it a currency.

It is not.

The irs says -- platform -- so were tulips in the 70 hundreds.

May i quote you on that?

I'm sorry.

I wish the people at bitcoin well.

But i just don't see this becoming an institutional product for mainstream finance.

Brendan, there is something that people may or may not know in this country.

The largest payment work -- why is that working so well and bitcoin seems to have fallen by the wayside?

It is a good question.

It is working because kenya is still a cash economy, despite the fact that they are well ahead of us in terms of digital payments.

You need a place to get cash into the system and backed out.

When this started it had agents in boots all over the country.

That network existed.

There is not yet a comparable physical network for bitcoin.

I spoke to an economist at the university of chicago school of law and i asked him about this yesterday.

Is bitcoin, as it is claimed, a

This text has been automatically generated. It may not be 100% accurate.

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