Alessandro Tentori and Ano Kuhanathan say the so-called cryptocurrencies are really crypto assets that even today form a relatively small part of global financial markets. Nevertheless, we can continue to expect them to attract investor and regulatory interest Economists have quite a strict definition of what can be labelled “money” or “currency”.

It must combine four attributes – it must be a medium of exchange, it should serve as a unit of account, it has to be able to store value and it must be legal tender. At the moment, bitcoin and other cryptocurrencies meet none of these criteria.

First, none have become a broadly accepted means of payment. Second, apart from crypto exchanges, only a handful of exchanges refer to value in bitcoin.

Third, according to coindesk.com data, bitcoin price swings make it hard to consider it a stable store of value and lastly, it is not legal tender. Therefore, we prefer the term crypto assets.

Opinion: Cryptocurrency is an uprising against today’s flawed financial system According to our research, the total market capitalisation of the crypto space is currently around US$324 billion compared to US$10.5 billion in 2014. The bulk of the growth has been over the past year, with aggregate market capitalisation surging more than 2,500 per cent. Read more from scmp.com…

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