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Author: Bitcoin's Skyrocketing Value Keeps it From Long Term Sustainability

© Sputnik / Vladimir Astapkovich / Go to the photo bankBitcoin cryptocurrency
Bitcoin cryptocurrency - Sputnik International
This week has been a rollercoaster ride for bitcoin, as the popular cryptocurrency broke past its $10,000 value mark Wednesday and then plummeted, losing 20 percent of its value the following day.

Despite this bumpy ride, federal regulators Friday gave the CME group the go-ahead on its plans to start trading bitcoin. This would be the first time the electronic currency would be traded on a major exchange, ABC News reported.

Considering it's a high stakes investment, could the cryptocurrency ever become sustainable?

Steve Keen, author of "Debunking Economics," told Radio Sputnik's Loud & Clear with Brian Becker and John Kiriakou that he isn't sure whether the currency is here to stay.

"The question is: can [bitcoin] be used for transactions at the price it's currently selling for and does the infrastructure behind bitcoin enable transactions to actually be made at anything like a realistic basis for a capitalistic economy," Keen asks Kiriakou. "At the moment I'm not sure the answer to any of the questions is yes and they need to be yes to sustain this price rise."

Joseph Stiglitz at World Economic Forum Annual Meeting in Davos. (File) - Sputnik International
Nobel Prize Winner Stiglitz Says Bitcoin is 'Bubble,' 'Ought to be Outlawed'
Were bitcoin to actually become sustainable, would it ever be possible for the cryptocurrency to top the current monetary system in place, Becker asked.

"Whether one can take over the other — I just don't believe that the transactional capability of bitcoin is there to take over the transactional role that the current monetary [system] plays," Keen remarked.

Though there's no doubt that investing in bitcoin is good, Keen says the only way it'll become sustainable is if the trend of its value increase ceases.

"People are making a large amount of money… but I think at some point there has to be a break in that trend if it's ever going to be sustainable for transactions," Keen added.

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