Traditional Investors: Bullish or Bearish on Bitcoin?
People have different opinions about cryptocurrency. Some see it as a potential investment opportunity while some look at it as a new form of scam online. We can’t argue with the fact that there are risks when you invest or trade with digital currencies. However, there are also advantages like it has a higher investment return.
The cryptocurrency is not supported by government and banks that’s why they are pushing for regulations to make it part of the “normal” financial system. They see Bitcoin and other digital currencies as a threat, even a major portion of Wall Street sees Bitcoin as a bubble.
Nevertheless, many developers and tech geeks support Bitcoin. Notably, former Google CEO Eric Schmidt has called Bitcoin “a remarkable cryptographic achievement.” He said that the currency gets massive value from its non-duplicable quality in the digital space.
Jamie Dimon, CEO of the United States’ largest bank JPMorgan Chase, recently called Bitcoin as a fraud while the firm invested in blockchain technology-based system for global transactions as it was proved safer than the traditional method.
According to reports, British banks are not letting companies dealing in Bitcoin open accounts with them. Banks, in general, have been averse to bitcoin as it challenged the centralized regulation of money as has been done for the longest time by financial institutions.
However, legal institutions now invest in blockchain technology as they foresee the system as the future of payment transactions.
Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates, told CNBC.
“Bitcoin is a highly speculative market”.
According to Dalio, cryptocurrencies like bitcoin qualified as a market bubble according to his firm’s criteria. He said that a quick rise in the value of Bitcoin and high demand expectedly results to a market bubble as they do not have a reliable source of value due to their extreme volatility and people buy them with the main intention of selling them later at a higher price.
Some cryptocurrency experts beg to differ what Dalio claims for Bitcoin. Andreas M Antonopoulos, a Bitcoin expert, said in an interview the value of bitcoin “comes from other people on the internet, who are with you” and attach value to it.
Even Wall Street has Bitcoin supporters like Morgan Stanley’s Chief Executive James Gorman who argued that cryptocurrencies are “more than just a fad.”
The battle of the experts whether Bitcoin and other cryptocurrencies are just a one-hit wonder or will stay for good is still a big question.
One thing is for sure, Bitcoin value has quickly increased and there is no sign of stopping so for investors and traders, this is the time to study the market of Bitcoin.