Wait with Bitcoin purchase? Economy- BTC „is highly unstable
Bitcoin has experienced a strong upswing since the lows in March, rising from $3,500 to as much as $16,000.
If you go back even further, the performance of Bitcoin is even more impressive.
Still, the crypto-currency has its critics.
Professor Steve Hanke of John Hopkins University, also of the Cato Institute, says Bitcoin remains a „highly unstable“ and speculative asset.
Hanke has been a Bitcoin skeptic for some time now, having made similar comments in the past.
BTC remains „highly unstable
Bitcoin has experienced a strong increase since the lows in March. The crypto currency has soared from $3,500 to $15,500 during this period – which means that a rally of 350% has taken place.
If you go back even further, Bitcoin’s performance is even more impressive, outperforming virtually every other existing asset class.
Still, the crypto-currency has its critics. Professor Steve Hanke of John Hopkins University, part of the Cato Institute, says Bitcoin remains a „highly unstable“ and speculative asset:
„“Bitcoin has recently outperformed stocks, gold and other assets. It is currently traded near three-year highs. Just further proof that BTC is nothing more than a highly unstable and speculative asset – NO CURRENCY“.
Hanke has long been a Bitcoin skeptic and had made similar comments in the past. Some in this room have tried to refute his opinion.
Alex Gladstein, CSO at the Human Rights Foundation and a prominent supporter of Bitcoin, once responded to Hanke:
„Did you know that if I send you Bitcoin, nobody can stop us? That no government, no company and no oligarchy can change its rules? That nobody can change the output of Bitcoin? That when used correctly it is incredibly difficult to confiscate addresses or link addresses to people? Why deny it when you can learn?
Bitcoin has notable supporters
Hanke is indeed a critic of Bitcoin – like other economists and investors in a prominent role. However the crypto currency has also considerable proponents.
Thus the billion-strong investor Paul Tudor Jones commented recently that the crypto currency is today in a similar position as Apple and Google at the beginning:
„Bitcoin has this enormous contingent of really, really smart and cultured people who believe in it. It’s like an investment in Steve Jobs and Apple or an early investment in Google“.
Even large companies support Bitcoin. Microsoft has used the crypto currency for an experiment in digital ID, and Fidelity Investments, the trillion dollar asset manager, has also made remarkable investments in the space.