Bitcoin Only ‘Masquerades’ as a Currency: BIS Research Chief

Hyun Song Shin, Economic Adviser and Head of Research of the Switzerland-based Bank for International Settlements (BIS), told Bloomberg that bitcoin and other cryptocurrencies “fall a long way short of being able to sustain a monetary system” and really only “masquerade” as real currencies.

Speaking in the latest episode of the Bloomberg Benchmark podcast, Shin argued that money, in the form digital cash or tokens, is a “record keeping device” and is essentially worthless — its value is only increased when others begin accepting it.

Is Bitcoin a Bubble?

Last month, Agustín Carstens, general manager of BIS, called bitcoin “a bubble, a Ponzi scheme and an environmental disaster.” When asked about Carstens’ statement, Shin said that miners have two incentives for verifying transactions. They collect their reward in the form of bitcoins as well as transaction fees paid by users.

If the capacity of the network is increased, not only will the problem be…