Ray Kurzweil, the head of Google’s engineering lab and renowned futurist, believes Bitcoin is too unstable to become the global digital currency.
Comparing Bitcoin to the US dollar and other reserve currencies, Kurzweil stated:
“Currencies like the dollar have provided reasonable stability. Bitcoin has not. And it’s not clear to me that the whole mining paradigm can provide that type of stability… We’ve seen tremendous instability with Bitcoin, so I wouldn’t put my money into it. I certainly do think there could be alternatives to national currencies emerging in the future. Algorithmic ones are a possibility, I just don’t think we’ve arrived at the right algorithm yet.”
What’s unstable: volatility rate or mining ecosystem?
However, Kurzweil’s reasoning behind the characterization of Bitcoin as an unstable financial protocol and digital currency is weak because he did not state how the mining paradigm of Bitcoin has provided instability to its network.
When Kurzweil compared Bitcoin to the US dollar in terms of stability, it is unclear whether Kurzweil intended to discuss the volatility rate of Bitcoin or its mining ecosystem because if it is the latter, Bitcoin has been tremendously stable and secure since its launch in 2009.