In light of recent media hype about Bitcoin, I raise this simple banking question: Is Bitcoin a Tier 1 asset? The clear answer is,"No." Bitcoin is a "junk asset" that President Donald Trump and industry insiders are trying to mainstream as a legitimate alternative currency to cold, hard, cash. It is speculative, volatile, and lacking in intrinsic value. Of course, Trump and his family members are in the cryptocurrency business.

Cryptocurrency is a form of digital currency. Unlike traditional currencies that are issued by central government authorities and regulated within an established banking system that is insured and highly regulated for customer safety, cryptocurrencies exist on decentralized virtual networks and use “blockchain technology" to securely record, store, and verify data.  The value of cryptocurrency is based solely on supply and demand, speculation, and perceived future usefulness.