Bitcoin: store of value or speculative investment
Jim O'Neill, President of the British “think tank” Chatham House, shares his thoughts on cryptocurrencies, i.e. bitcoin, in an article published in the magazine “Política Exterior”.
According to Jim O'Neill, the value of bitcoin and other cryptocurrencies and their popularity to obtain capital gains responds to a high speculative component, taking into account that:
However, for Jim O'Neill there is a situation in which the enthusiasm caused by bitcoin or other cryptocurrencies can be understood: when there is an alarming lack of confidence in the legal tender. It would be the case in some developing or emerging economies "where central banks can often not be trusted or investment in foreign currency is forbidden". In his opinion, in those cases "hoarding savings in digital currency is obviously attractive".