Technology

Bankers Can Hate All They Want On Bitcoin, But

In a recent report, analysts at Bank Of America summarized their views on Bitcoin and cryptos as follows: Bitcoin (currently valued at $80bn) is the original and largest coin, however in our view, it is struggling to fulfil its objective of facilitating decentralised payments. Its costs, lack of speed and tax treatment in some key jurisdictions, make it hard to use for payments. It can be seen as “digital gold”, but lacks gold’s track record. Ethereum ($28bn), the next largest, allows users to write code within its blockchain. These “smart contracts” enable a plethora of applications to be built. Ethereum has hosted a lot of coin offerings (“ICOs”). The future adoption of ICOs is important to Ethereum’s success.

But there is a wide debate over the crypto-world. See more below from MillenialInvest

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Former CEO of Barclays, Antony Jenkins, has a long position in bitcoin. Jenkins is the head of 10x Future Technologies and says there is clearly a bubble going on in the bitcoin market, but it is a learning opportunity for financial technologies and those currencies will be important. Jenkins notes that it wouldn’t be surprised if some of boom and bust behavior happens, with big banks being in denial about bitcoin and other fintech upstarts. Banks need to embrace the better technology - the blockchain.

Meanwhile, the former Federal Reserve chairman Ben Bernanke says that bitcoin will fail. Bernanke said that bitcoin remains a speculative venture and hasn’t shown itself to be a real transactional currency. The key being that regulators and governments will crush bitcoin as they assert their authority over bitcoin. But Bernanke loves the blockchain technology. The Fed is very supportive of these technologies according to Bernanke.

Then there’s hedge fund manager Mark Yusko, who’s just gangbuster on bitcoin. He says that bitcoin can hit $1 million a coin in the long-term given the network effect.  He’s also notoriously bearish on the stock market and says the U.S. economy will have a massive crash. A big hedge for this coming crash is bitcoin. In the base case, Yusko says bitcoin can hit $500,000 in the next decade.

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