Authored by Anneken Tappe via MarketWatch

 

George Soros says bitcoin is not a currency. The billionaire investor best known for a winning bet against the British pound in the early 1990s ought to know.

Speaking at the World Economic Forum in Davos, Switzerland, Soros said bitcoin’s volatility make uniquely ineffective as a form of currency, adding that it isn’t much better as a store of value akin to gold GCG8, -0.66% either.

He said, ‘bitcoin is not a currency. a currency is supposed to be a stable store of value and a currency that fluctuates 25% in a day can’t be used to pay wages, for example.”

Indeed, a single bitcoin has shed half its value, falling to around 11,300 on the futures markets XBTG8, -0.97%BTCF8, +0.58% since hitting a peak in December nearing $20,000.

The world’s most popular digital asset has been prone to wild swings since it was created in 2009. Its recent popularity has garnered warnings from Wall Street heavyweights who have described bitcoin BTCUSD, +0.04% as a speculative bubble and ill-fashioned for transacting payments due to high transaction costs and its slowness.

However, Soros was a fan of the decentralized, distributed-ledger technology, which underpins most crypto-assets like bitcoin and Ether.

 


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