It looks like Bitcoin is here to stay, at least if you believe a survey of the 30 leading global Bitcoin firms whose livelihood depends on the digital currency. The new survey from Magister Advisors determined there was a consensus that Bitcoin will grow into the sixth largest global reserve currency by 2030.
Of note, the price of the digital currency has been on a tear lately, moving up from $213 in mid-August to as high as $375 as of early November.
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More on new Bitcoin survey
Bitcoin is a so-called virtual currency that permits the exchange of online credits for goods and services. Millions of dollars of bitcoin transactions occur daily all across the globe. That said, many analysts and industry observers believe the true value of the cryptocurrency lies in the technology behind bitcoin known as the blockchain, a public and fully transparent ledger of every bitcoin transaction.
The Magister survey suggests that around $1 billion will be spent by the top 100 financial institutions on blockchain-related projects over the next two years. Jeremy Millar, partner at Magister Advisors, claimed that the blockchain was the most significant advancement in enterprise IT in the last decade.
“We have now reached a fork in the road with bitcoin and blockchain. BTC has proven itself as an established currency. Blockchain, more fundamentally, will become the default global standard distributed ledger for financial transactions,” he argued in a press release about the new survey Tuesday.
Bitcoin criticized for high volatility
Keep in mind that Bitcoin has been criticized for its extreme volatility and for facilitating illegal activity as it can be bought and spent anonymously.
Jeffrey Robinson, the author of “BitCon: The Naked Truth about Bitcoin” is a well-known critic of the virtual currency. He has said that he believes it is a “pretend currency masquerading as a pretend commodity,” and alleges that purveyors of the popular cryptocurrency are modern day “snake oil salesmen.”
The new survey also addressed the issue of volatility. The study confirmed that the primary usage of bitcoin in developed markets today was for speculation. Survey respondents suggested that close to 90% of Bitcoin owned by value is for speculative investment rather than for commercial transactions.