Bitcoin, the Internet’s cryptocurrency, is
exploding to new all-time highs.
But it’s not a legal currency, and you’ll have an extremely difficult time finding anyone that will accept it in exchange for goods.
Business Insider’s Joe Weisenthal appeared on CNBC’s Closing Bell with Maria Bartiromo to debate the merits of Bitcoin with NetNet’s Jeff Cox.
“Why not Bitcoins? Cox said arguing the bull’s point which often points to currency debasement by central banks. “I think this is just a natural hedge.”
“So, Bitcoin has gone from $US100 to $US280,” rebutted Weisenthal. “It’s completely reckless to call it a natural hedge. This has nothing to do with central banks.
“This is just beanie babies and pogs and another bubble,” added Weisenthal. “What gives a currency value is that it’s a legal tender.
“The difference between bitcoin and the U.S. dollar is that it has a legal backing. It has a government that says “You must use the dollar to pay taxes.””
Cox argued that the stock market is often just as volatile as Bitcoin. But Weisenthal reminded Cox that “there are real companies backing stocks.”
“Jeff, would you like to be paid in Bitcoins?” asked Bartiromo.
“I don’t know if it would be for me,” said Cox.
Here’s the exchange: