Now that Bitcoin has reached $10,000, speculation regarding its futures are reaching a climax. Some see it at $1 million like John Mcafee who in a Tweet declared that he was increasing his forecast on the digital currency. Some others like Jamie Dimon say “Bitcoin is a fraud”, forgetting that JPMorgan (NYSE:JPM) was involved in the Libor scandal.
Others are also very suspicious, like the 2014 Nobel Prize, Jean Tirole, who is concerned about the possible financial bubble that Bitcoin represents. Unfortunately we have not heard from him yet about the massive debt from G10 countries. He then added that he is afraid that money is being privatised. We should recall that the Fed is a private bank that control the issuance of all dollars. Is there any reason to be afraid of the Fed in this case?
In our view, even though the Bitcoin technology is not perfect, with very low transaction speed and high transactions fees, the digital currency has a strong advantage. I am not talking about the ability to store and transfer value but about the strong acceptance rate that makes it a strong investment over the future.
Anyone can create a blockchain but there is almost no chance that it becomes as mainstream as the Bitcoin.