Is bitcoin's collapse still possible? Now that the market for cryptocurrencies and blockchain technology is set on fundamentals as strong as it has ever been, it seems unlikely? But. Avraham Simhon is no slouch in the world of Israeli economics. For the past three years, he has been chairman of the National Economic Council and also an adviser to the country's prime minister. Now, during a summit at Tel Aviv University, he decided to give his opinion on Bitcoin. Bitcoin will disappear! If Simhon is to be believed, things are not as good as they may seem. The number of flaws of the major cryptocurrency is sizable. It is "internally inefficient", moreover, its mass adoption would cost "trillions of dollars in real energy costs". The latter - compared to the rather cheap printing of banknotes - seems an insurmountable barrier. An additional difficulty, moreover, is the legal qualification of the digital currency created by Satoshi Nakamoto. Bitcoin will therefore disappear, according to Simhon. However, this does not mean the demise of e-currencies. They will remain, but under a more civilized (yes, that term would certainly satisfy him) form of electronic currencies subordinate to central banks. According to a new report published by the Bank for International Settlements (BIS), as many as 70% of central banks around the world are already studying the implementation of such solutions. We mentioned this yesterday. Is bitcoin Schrödinger's cat? The topic of Bitcoin was also taken up by Wall Street investor Bill Miller. In an interview with a CNBC reporter, he said that BTC could potentially become very expensive or become worthless. That statement alone sounds simultaneously like a) a cliché, b) a study in quantum physics, and c) a rookie analyst's rate forecast. Miller, however, can hardly be accused of being amateurish or even hostile to cryptocurrencies. Back in December 2017, when rocket-fueled bitcoin was flying to $20,000, he admitted that he had nearly 50 percent of his hedge fund money invested in it. Six months later, he said he had held a token one percent of his own assets in digital currencies since 2014. He also saw positives in bubbles, which "are necessary to get capital into the market to see if these innovations will actually happen." In any case, Bitcoin's collapse seems as unlikely today as ever. But why are there such skeptical opinions about cryptocurrencies among well-known investors, economists or politicians? Certainly, it's the price that new technology and the people behind it pay for the revolutions they bring about. Especially older people need more time to fully understand and accept new trends of thought and technological solutions. But does this mean that BTC itself definitely has a bright future ahead of it? No. How the fate of the mysterious Nakamoto's invention will turn out remains to be seen in a few years. Tags Avraham Simhon Bill Miller bitcoin CNCB Israel Wall Street
No comments:
Post a Comment