- Facebook Libra lead David Marcus doesn’t believe bitcoin is a currency.
- Its volatility keeps it from becoming a currency, he explained.
- Bitcoin is more aking to ‘digital gold’, according to the Facebook executive.
Facebook’s crypto frontman David Marcus, provided bitcoin with a backhanded compliment on Wednesday. According to the Libra lead, bitcoin is a dead ringer for digital gold, but not an appropriate currency.
Speaking at the New York Times DealBook Conference, Marcus praised BTC for its investment qualities, calling it “digital gold,” but caveated that it doesn’t work as currency:
I don’t think of Bitcoin as a currency…It’s actually not a great medium of exchange because of its volatility. I see it as digital gold.
Within his reasoning, Marcus rattled off several shared characteristics between the precious metal and bitcoin. Specifically noting its use as an investment. Nevertheless, the discussion once again came around to bitcoin’s trademark volatility.
Marcus argues that a 20% drop in one day during cross border payments, wasn’t suitable, adding that people don’t use bitcoin as payment due to these price swings.
Moreover, he even suggested that regulators haven’t cracked down on BTC simply because it doesn’t endanger the status quo.
It’s an investment class that’s decorrelated from the rest of the market, Marcus opined, why feel threatened by that?
Still, throwing crypto a bone, the Libra lead admitted that exposure to Facebook’s digital currency would inevitably provide an avenue to bitcoin and other cryptocurrencies.
Bitcoin: Digital Gold or Medium of Exchange?
Crypto aficionados have forever bickered over the exact nature of bitcoin. Disputes over its classification have given cause for fallouts, fights, and even hardforks.