Bitcoin, the crypto-rocket, shot past $11,000 last week, adding more disruption to the digital payment markets globally. This insurmountable growth has also fuelled the debate shrouding the future of bitcoin; probably the first decentralized digital currency.
However, still at a very nascent stage to yield any concrete results or set any benchmark, bitcoin concept has led to mixed feedback in the market.
Here to stay or wither away
If there are experts who believe this revolutionary concept is here to stay, then there is a section of naysayers who deem it as an over-exaggerated market bubble that will eventually wither away with time.
There are industry veterans comparing this with the tulip bulbs bubble of Europe in the 17th century, when a single tulip bulb was sold for ten times the yearly wages of a skilled worker. Then there are authorities that are quite optimistic with this rise and advise the stakeholders to adopt the policy of wait and watch instead of taking any rash step.
Needs an open-minded approach
Khaldoon Al Mubarak, chief executive of Mubadala Investment Company, said that he doesn’t believe bitcoin is a fraud.
Al Mubarak has advised the investors and markets to wait for the things to unfold in a logical manner before coming to any conclusion.
“No. I wouldn’t agree in calling it a fraud. I would say time will tell. It could well be (a fraud) and it could as well not be. I think one has to be open-minded,” CNBC quoted Al Mubarak.
“I think blockchain, its growth, from the single digits, early double-digits, to astronomical growth, will really depend on how fast you can execute and where you’re going to be able to execute under a regulatory environment that is acceptable,” added Al Mubarak.
Abu Dhabi-based Mubadala Investment Company is one of the world’s largest sovereign funds.
If we go by the astonishing market value then it is apparently unreasonable for financial institutions and investors to ignore the astronomical rise of bitcoin in the last few months.
Bitcoin value is touching a mammoth figure of more than $180bn and the total for all crypto-currencies is fast reaching twice this amount. There are reports that strong push to bitcoin has propelled the digital currency market up to more than $300bn.
Livebitcoinnews.com reported that this rise in value now means that the combined cryptocurrency market is more valuable than Visa, Wells Fargo, and Bank of America.
Only few exchanges involved
Bitcoin has seen a phenomenal surge since the beginning of 2017. In January its price was hovering around $900 and it reached a record value of more than $11,000 last week.
However, one area of concern that has attracted the attention of various institutions is the fact that most of the trading in bitcoins is controlled by only a handful of exchanges like Coinbase and Gemini Exchange.
In the wake of whopping rise of bitcoin, experts also argued is it a new alternative for central banks and other regulators in terms of currency printing or are people gradually losing trust in these institutions?
Is bitcoin a ‘fraud’?
Jamie Dimon, the chief executive officer of JP Morgan, had called this wonder rise of bitcoin a fraud, saying that it was worse than the tulip bulbs bubble in Europe.
“I could care less what bitcoin trades for, how it trades, why it trades, who trades it. If you’re stupid enough to buy it, you’ll pay the price for it one day,” Dimon told a conference in Washington, reported BloombergGadfly.
In the meantime, we have no option other than to wait and follow the developments. However, the industry pundits claim that most of the concerns regarding the future of bitcoin will be cleared by the end of this year.