He refers to research showing that an international currency must meet at least four basic conditions: it must have a long-term stable value: there must be sufficient volume to meet the needs of international trade in goods, services and financial assets: transaction must be low, with small differences between bid and ask prices and high liquidity; and there must be a stable issuer who guarantees the currency, writes Roger Svensson.
He compares bitcoin to historical currencies such as the Athenian tetradrachms, Roman denarii, and Byzantine solidus. He also compares bitcoin to other currencies such as the British pound and the US dollar. All of which meet the requirements to function as an international currency.
He concludes: ” /…/ there is nothing value-stable in a medium that does not meet any function as a mode of exchange, unit of account or store of value, and which lacks an issuer. The increase in value is reminiscent of a pyramid scheme where investors constantly hope that others will value the asset even higher.”