You are here: HomeAfricaBBC2021 06 08Article 1281208

BBC Pidgin of Tuesday, 8 June 2021

Source: www.bbc.com

Bitcoin: Donald Trump say di crypto-currency na scam against di dollar

Former US President Donald Trump don tell Fox Business say im see Bitcoin as 'scam' wey dey affect di value of di US dollar.

"Bitcoin just be like scam," oga Trump tok. "I no like am because na another currency wey dey compete against di dollar."

He add join say e want make di dollar be "di currency of di world".

Im comments dey come afta tori say El Salvador get plans to make crypto-currency legal tender.

Di price of Bitcoin don dey fall wella since early May and so far e neva recover.

Reason why crypto dey drop many pipo believe say na because China ban banks and payment firms make dem no provide services wey dey related to crypto-currency transactions, also electric car maker Tesla announce say im no no go accept di currency one week before dat.

Bitcoin be threat to currency? Dis na wetin experts think.

Justin Urquhart-Stewart, co-founder of Seven Investment Management and di regionally investment platform, tink say Bitcoin fit threaten and destabilize currencies "because di way e take start, e create popular appeal without any correct financial strength".

He blame di rise of Bitcoin on pipo like Elon Musk "behaving stupidly", wey make di general public reason say di crypto-currency dey trustworthy.

"Bitcoin dey dangerous because e dey try to create a level of credibility to unreliable and wholly unfounded value," he tell di BBC.

He say plenty young pipo wey like technology "like hobby technologists", dey take big risks because dem no dey educated about finance properly.

Oga Urquhart-Stewart strongly believe say di national curriculum suppose include education on how to develop family finances over generations.

"Wetin we get now na young generation of punters, wey no get knowledge of financial planning and development," oga Urquhart-Stewart add.

"Dey sabi how to buy and sell things, but dem no get idea of how to create longer-term wealth."

No threat to di dollar

Neil Wilson, chief market analyst for Markets.com, tink say Bitcoin no be currency.

E say before bitcoin go fit qualify as currency, e must dey perform di following functions:

  • A unit of account


  • Provide a good store of value


  • Be a means of payment


  • "I dey call Bitcoin more of a security, like a stock or bond," oga Wilson tok.

    "Although many pipo for di world dey appreciate am, e too dey unstable to be a currency - e dey move around pass how most stocks dey move."

    E say wit Bitcoin, most pipo dey buy am, dem fit hold am and invest, instead make dem dey spend am always.

    He no gree say crypto-currency dey threaten di dollar as oga Trump tok, although e fit be small threat to gold

    "Goments no like make oda pipo dey create money - dem try tolerate crypto-currencies for some time, but dem go eventually get dia own digital currencies established and go squeeze Bitcoin comot for di margins."