Oct 27, 2018 at 12:09
Oct 27, 2018 at 12:09 UTC
Is the Value of Bitcoin Legitimate?
With prices of cryptocurrencies swinging wildly, investors are on the fence. While some are in favour of crypto, others are taking a cautious approach. Whether you are a follower or a detractor, one thing’s for sure that you cannot avoid Bitcoin. Despite the skepticism in the market and crackdowns by the government, at the time of writing the trading value of Bitcoin was USD 6,482 and its total market capitalisation was USD 112,415,049,324.
To come to the conclusion whether the Value of Bitcoin is legitimate or if it is a bubble, let’s weigh the statements made by some of the biggest names in the finance industry.
Backers of Bitcoin’s Value
The world’s first cryptocurrency finds its most prominent backer in Roger Ver, who is famously known as the ‘Bitcoin Jesus’. Despite crackdowns by various governments across the world, Ver stays optimistic about the value of Bitcoin as well as its sustainability. In an interview with the Bloomberg News, Ver has been quoted as saying “The only way to stop Bitcoin is to turn off the entire Internet in the entire world and keep it turned off.”
Many countries are actively adopting the cryptocurrency into their financial system, for example the Governor of the Central Bank of Turkey has stated that digital currencies are the future and he sees their potential in contributing to the financial stability of the world if deployed in the right manner. Former Fund Manager at Legg Mason Inc., Bill Miller firmly believes in Bitcoin’s value as he was reported to have increased the holdings of the Miller Value Fund in Bitcoin in 2017 to as much as 30 percent. The move was a clever one as the fund went up by almost 72 percent.
Non believers in the value of Bitcoin
Some experts are of the view that the speculation around Bitcoin’s value is the reason why it is considered a bubble. According to a statement made by the Chief Executive Officer of Credit Suisse, Tidjane Thiam, the reason why one should invest or trade in Bitcoin is to make money. He elaborated that such speculation around the value of an asset always leads to the bubble bursting eventually.
Another big detractor of Bitcoin is the Chief Executive Officer of JPMorgan, Jamie Dimon. The Wall Street personality has famously said in an interview that he considers the people who are buying the cryptocurrency as ‘stupid’ and that ‘governments will crush the cryptocurrency eventually’.
After hearing the views of some of the well known investors and CEOs, it is interesting to weigh in their remarks and decide which side of the fence are you on. We will have to wait and watch to see if the Bitcoin bubble bursts or if the world’s first cryptocurrency becomes a mainstream store of value.