Bitcoin is Not a Currency: says Frank Troise, Managing Director of SoHo Capital – Cryptovest (Cryptocurrency & Blockchain News)


While the debate rages on about whether or not Bitcoin is a bubble, there are others asking themselves whether it’s a currency at all.

Frank Troise, Managing Director of SoHo Capital, believes that he has the answer.

“I think calling [Bitcoin] a currency is a misnomer. I mean, right now, it’s trading like a highly volatile asset or commodity. It’s not really used in any form of exchange with anyone. And look at the fundamentals. Tomorrow if we come in and Bitcoin is up 40 percent, why [does it happen]? In the old days, you and I would say, ‘Well, Warren Buffet was a buyer of the stock and it’s up 10 percent here.’ There’s hardly any transparency or any visibility in this as an investment, and that’s what investors really need,” he said in an interview with CNBC.

The lack of transparency has much to do with the fact that Bitcoin isn’t an asset listed on some stock market. 

This could, however, be seen as an advantage, since the decentralized currency allows people to do commerce anonymously if they wish.

On the other hand, Troise thinks that transparency will come on its own nonetheless due to the influence offered by futures contracts like the ones that CBOE, CME, and NASDAQ are offering or will offer shortly.

“…They require substantial cash deposits in order to support Bitcoin. So, I think by default, we’re going to see more transparency. I think the biggest thing for [us] to watch [is the fact that] hedge funds want to sell Bitcoin and there’s a big short getting ready to come into this market,” he said earlier in the interview.

Troise’s words reflect the attitude of South Korea’s central bank, which has officially declared that Bitcoin will not be treated as a currency, but rather as a commodity.

The governor of the Bank of France, Francois Villeroy, has also said that Bitcoin “is in no way a currency, or even a cryptocurrency.”