Today, Bitcoin has hit a new record high after passing $9,000. It is now worth more than seven times an ounce of gold, but the question is same, what actually the future of Bitcoin is? Is it a fraud? Bitcoin’s value is a sign of a growing rebellion against a monetary system. Many of the experts believed that Bitcoin is a delusion or a bubble which is going to burst very soon.
Bitcoin is a Fraud
J.P. Morgan CEO Jamie Dimon thinks bitcoin is a “fraud.” Investor Mark Cuban called it “a bubble.” Goldman Sachs CEO Lloyd Blankfein is still undecided. The most important here is that these all are the legends in the business world.
What is Bitcoin?
Bitcoin is a virtual currency that emerged in the aftermath of the financial crisis. Satoshi Nakamoto, as the man or women, or men who began it all called himself, was born in Japan on April 5, 1975. This anonymous person is the founder of Bitcoin.
“Bitcoin has not been adopted by any government.”
Why is Bitcoin a bad investment?
Bitcoin has gained more than 50% since the CME announced its decision on 31 October.
Neil Wilson the senior market analyst at ETX Capital said:
“The legitimacy this gives bitcoin as a tradeable asset is very important. The market cap of bitcoin now exceeds that of IBM, Disney [or] McDonald’s.”
Wilson added: “Rather than a commodity or currency, bitcoin is like owning stock in a company that will only ever issue 21m shares and never pay a penny in dividends. The only way it has value is if the next guy is willing to pay you more for it – the greater fool. With no intrinsic value to bitcoin, it’s hard to see this as anything other than a giant speculative bubble.”
In my personal opinion, Bitcoin is the threat to the various economies across the globe. All the governments should adopt proper measures to end it.