In an interview with Yale Insights, a Finance Professor at Yale University William Getsman (William N. Goetzmann) shared his opinion about bitcoin and its role in modern society.
“The volatility of bitcoin indicates problems with the establishment of trust necessary for a widely used currency. But the spread of crypto currency also shows that traditional government-backed currency does not meet the needs of everyone”, – said the scientist.
During the conversation he also stated that Bitcoin is not a good store of value because its value is constantly changing.
For people like Getsman, usability of currencies, and all other factors are secondary to its function as a means of savings.
“There are a few basic things need to carry any currency. It must be a store of value… It should be a method of transferring value. In the case of bitcoin the fluctuations are so strong that it is not a good store of value. You can invest $100 and two weeks is the amount it will cost $25. While bitcoin will not overcome this feature [high volatility], it cannot be considered great currency.”
In this case we are talking primarily about the negative fluctuations associated with falling prices. When the market moves up, few people complaining about volatility.
In addition, there are opinions that the market for bitcoin will always be volatile. When the market is growing, from volatility to the benefit of all.
As for Hezmana, in its opinion on bitcoin there is another interesting aspect. The scientist believes that Bitcoin is a return to the original way of doing business. Before was invented Fiat money and coins, people traded in the books of account, assigning the value of its products and services, rather than exchanging real money. According to Hezmana, this is reminiscent of the blockchain.
The advantages of bitcoin, the scientist took the resistance to counterfeiting, which is an acute problem for Fiat money.
Overall Getsman takes a neutral position in regard to bitcoin. However, he believes that at the present time this is the best investment in speculative assets.