Bitcoin Crash - What is Bitcoin? And will it continue to rise
Clem Chambers, Founder and CEO of ADVFN talks about the sell-off in Bitcoin over the weekend and why this happened. Chambers highlights the difference in the markets idea of what Bitcoin actually is. Is it a store of wealth or a currency?
Chambers notes that the creators of bitcoin see it as a store of wealth, yet owners are looking to use Bitcoin as a form of currency and therefore use it to transact with. Chambers highlights the creation and forks that have allowed bitcoin to be used a currency as a form of payment in exchange for goods and services.
However the transaction costs involved with using bitcoin as a form of currency have prevented and prohibited it's use for low value transactions. However, the introduction of Bitcoin Cash and Bitcoin Lite have made smaller transactions possible. Bitcoin can be used to pay for larger ticket items, where paying by cash is being prevented due to regulation and compliance restrictions.
Chambers notes the E.U. limits on cash transactions above €2,000 . Bitcoin is being used more by businesses to transact and is seen as faster way to exchange versus a slower banking system, allowing companies to provide goods and services to market at a quicker rate. Bitcoin owners have sold holdings to buy bitcoin cash, hence the former crashing and the latter rallying.
However, Chambers still sees the master Bitcoin reaching $100,000 per coin in the future. As a store of wealth this strengthens the case to own bitcoin. A lack of money in the system is creating a vacuum . Chambers is releasing a book over the coming days that will explain how to trade Bitcoin and other cryptocurrencies.
You can see more videos from Clem Chambers by using the following link: http://www.corelondon.tv/?s=clem+chambers