Bitcoin Will Return as ‘Niche’ Product Once ‘Hype’ Subsides: Senior Economist

Bitcoin will return as a ‘niche product’ once its current ‘hype’ has dissipated, according to International bank ING’s senior analyst Teunis Brosens.

Bitcoin has recently breached the $20,000 mark with the recent launch of Bitcoin Futures products by US-based stock exchanges.

In a report by CityAM, Brosens was quoted as saying that the current hype on Bitcoin is based on shaky foundations and once it has subside, it will return to what it was in its initial years.

“Nobody can forecast the future, but our current thinking is this: one day, beyond the hype, Bitcoin will return to being the thriving niche product that it was in its initial years. Users will include tech nerds, people obsessed about their privacy, people afraid for (hyper)inflation in traditional currencies, and people wanting to circumvent central banks for ideological or criminal reasons.”

Brosens’ comments reflect that of his superior, ING chief executive officer (CEO) Ralph Hamers, who claimed that he is still bewildered over the reasons behind the skyrocketing upward trajectories of the digital currencies like Bitcoin, Ethereum, and Litecoin.

“How the value behind cryptocurrency is driven, how to manage that valuation… I’m yet to be convinced.”

Other leaders in the financial industry and associated businesses have also criticized the virtual currencies. Goldman Sachs CEO Lloyd Blankfein has reiterated his position that he is not in favor of Bitcoin but is not closing the door on the number one digital currency.

Meanwhile, Bloomberg CEO Michael R. Bloomberg was confused between Bitcoin and Blockchain, and even claimed that the Bloomberg system itself was an example of a Blockchain.

“In fact, the Bloomberg system is a Blockchain. Instead of having the users control it, we control it, but it has all the attributes of that.”<.blockquote>

Whether Bitcoin continues to have great adoption or revert back to being a niched product, at this point, only time can tell.