The recent setbacks as faced by Bitcoin didn’t stop an expert economist to put that in next five years, the cryptocurrency was definitely headed for a big value.
The digital currency recently faced a huge decline in its value after the Chinese government decided to ban the cryptocurrency exchanges and ICOs. The currency which previously was growing unprecedentedly, slumped down by a great margin. This led many people to think that the digital cryptocurrency was indeed a bubble. An expert banker, Tom Lee, who also worked as a former Managing Director at the famous US-based banking firm JP Morgan Chase, however, thinks that the Bitcoin is here to stay.
Lee says that after the decision made by China, the price of Bitcoin had to fall as people had to “force-sell” their cryptocurrency assets. There have been at least seven such occasions this year when the cryptocurrency fell down by this magnitude. He, further said, that the perspective people have about Bitcoin will also shape the future of this currency.
“Well for instance, you know number one Bitcoin is not what people think… We have some data, there’s only 300,000 holders of at least $5,000 so think about that that’s like saying the iPhone was a bubble in 2007 four days into the sale because there were 500,000 of iPhones. So it’s not that many holders of Bitcoin you know when you think about how many wallets there are today that holds $5,000, it’s huge so I think it’s still very early stages,” he said while talking in CNBC’s Fast Money program.
Lee was also quite sure about the transparency, digital currency brings with it. He mentioned that crafting a fake Bitcoin might cost as much as $30 bn dollars, a huge amount to say the least. It would, however, be worth mentioning here that the cryptocurrency has always garnered diverse views and opinions. The CEO of JP Morgan Chase & Co, Jamie Dimon, recently called Bitcoin a fraud, stating that the bubble will soon burst.
Bitcoin is definitely the leader in the market of cryptocurrency right now, followed by other major contenders including Ethereum and Ripple etc. You can bookmark and regularly check out the cryptocurrency section on our website to stay updated on the topic.
News — Via CoinTelegraph