Fiat currencies stand firm against bitcoin

The cryptocurrency is a victim of its own success as strong demand pushes its price up, increasing speculative flows

Bitcoin on circuit board
Unhappy medium?: bitcoin poses minimal risk to financial or monetary stability, says KiHoon Hong

Fiat currencies are unlikely to be threatened any time soon by increasingly popular virtual currencies, such as bitcoin, because the very design and size of this mostly unregulated digital market robs it of the opportunity to become a medium of exchange, according to researchers at the Swift Institute.

"Contrary to conventional wisdom, our research shows fiat currencies crowd out bitcoin, not the reverse, and the design and size of the bitcoin market deprives the currency of its intended use as