A lot of Nobel Prize winners have been threatening bitcoin or saying that it's a something that should be terminated.
Joseph Stiglitz thinks that bitcoin should be outlawed because it has no societal use or function. Robert Shiller explained that people like bitcoin because the feeling of anti regulation or anti government. It makes the people feel lawless. JPMorgan boss Jamie Dimon thinks that bitcoin will fade, like a trend.
The point these economists are making, is that bitcoin is extremely unreliable. It has hit a high of selling at 11,000, but it has also before dropped to 2,000. The only reason why Bitcoins are now selling at 11,000 is because big name investors and hedge funds have begin to take an interest and started to invest.
Bitcoin will only survive if big name companies start gaining massive interest and show Bitcoin as a way to diversify their portfolios. If big name companies loose interest fast, then Bitcoin will slowly die the more people that pull away from it. Also unless Bitcoin finds a way to make it easier to spend or unless more places start offering to take it as a way of trade.
http://money.cnn.com/2017/12/01/investing/bitcoin-criticism-outlawed/index.html?iid=SF_River
Bitcoin really serves no purpose and doesn't really have any value. Right now it serves as a way for people to invest quickly get a little bit of return and leave. If big name companies lose interest then bitcoin really would be worthless and the market for it would collapse. I agree that in order for it to survive there needs to be some practical use for it. So it will be interesting to see if companies begin to actually use bitcoin.
ReplyDeleteI definitely think that the skepticism surrounding cryptocurrency (Bitcoin specifically) is warranted, but the emerging global interest of it cannot be disregarded. Bitcoin is actually being accepted by a growing number of companies, so it's hard to say where this road will take it.
ReplyDeleteBitcoin may have no purpose to Mr. Stiglitz but to others it vary well may. Speculation of goods is something that will naturally come with the market system. I don't think anyone would be saying "we should ban these tulips becasue they dont really serve any purpose" in 1630s Holland. Bubbles will be a part of market systems which is why Mr. Diamond appears more reasoned in his approach that it will be a trend. Bitcoin is not the only the cyprtocurrency and it may very well be replaced by a better one, effectively making bitcoin and not cryptocurrency a trend.
ReplyDeleteBitcoin is a interesting stuff. It's advantage is no government regulation, and only depends on p2p. It's disadvantage is the hacker threat, and not popular in use. But I think it will continue active in public view. Time will tell us how is Bitcoin.
ReplyDeleteI agree with what Madison said. When bitcoin first emerged I think that people were more skeptical about it then they are now. The more big name companies showing interest in bitcoin, the more people that are going to become interested or even start using the app. I also agree with what you said though, the only way for bitcoin to survive is if big name companies show an interest in it.
ReplyDeleteThe crypto-currency market is one that is very new not a lot of people have knowledge on it. Since people have so much confidence in it and big name banks are looking at investing this has increased consumer confidence greatly and the numbers show that.
ReplyDeleteI agree that that the lack of regulation associated with bitcoin may be its great advantage. However the future of its value still remains in question and it is not clear if it will ever become an effective form of trade.
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