Bitcoin A Global Currency? That’s A Myth

Bitcoin isn’t a global currency ready to replace national currencies, including the mighty dollar. That’s a myth.

At least, that’s the message from the recent emerging market currency crisis. The digital currency is crashing in tandem with emerging market currencies rather than rallying, as Bitcoin investors would have expected.

The emerging market crisis is a currency crisis. Investors are losing faith in currencies of countries heavily indebted in US dollars, and in the reluctance of central bankers to fight inflation.

Like Turkey and Argentina, which have seen their currencies plummeted in recent weeks. Both countries have big dollar denominated debt burden. And their central banks have been losing their independence to fight inflation.

That’s why emerging market investors have been looking for alternative vehicles to park their money. Like US Treasuries, which have been a traditional…