Unsurprisingly, the controversial digital currency Bitcoin continues to “make waves” with conflicting news. On the one hand, billionaire entrepreneur creator of Tesla electric cars, Elon Musk, took a turn in his opinion of cryptocurrency. Initially accepting it as payment when selling their vehicles and later moving away from it, declaring that it is slow and with very high costs, according to the magazine Forbes. On the other hand, the diary The Financial, in Mexico, claims that Steve Wosniak, co-founder of Apple, is in favor of bitcoin, saying it is “the most amazing mathematical miracle” and “better than gold.”
The truth is that Bitcoin is attracting the attention of at least four or five Latin American governments. Recently, El Salvador became the first country on the face of the earth to accept this cryptocurrency as a legal unit for the exchange of goods and services. This move went around the world, causing a stir both for and against that decision.
Paraguay, Brazil and Panama also view with favorable eyes the potential use of bitcoin for their transactions. Of these, Paraguay leads the way with this way of thinking becoming the second country, after El Salvador, to present a formal bill to approve bitcoin as a legal currency. In addition, CNN reports that, in Argentina, there is already a bill to approve cryptocurrencies as a form of salary payment to its workers. Would you accept that the company or business for which you work would pay you from now on in digital currency?
Adding to the controversy, finance experts in Europe insist on the high risk when adopting or using digital currencies. Valora Analitik, a business of Colombian stock market agents, reported that Pieter Hasekamp, director of the Dutch Bureau of Economic Analysis, said that “bitcoin has no intrinsic value and is only valuable because others can accept it.”
At the end of the day, perhaps cryptocurrencies like bitcoin will become generally viable digital money. But there is no other way to be cautious. China, the country where between 60% and 75% of bitcoins are currently mined, has just sowed enormous doubts as to the continuation of its support for the currency, initiating an unprecedented siege of digital miners. This has increased the volatility about the strength of this cryptocurrency, especially due to the detriment to the environment due to the massive amount of electrical energy needed to produce bitcoins. A couple of months ago, Iran recorded tremendous blackouts in several of its cities which were attributed to digital miners producing bitcoins in that country.
Faced with this dilemma, it is worth noting, before making a decision and meditating on the biblical counsel of Proverbs, which states: “The miser is hastened to be rich, and he does not know that poverty is to come to him” (Proverbs 28:22).