The financial world has been set agog since the rise of Bitcoin, the first cryptocurrency created by an unknown person who is popularly referred to as Satoshi Nakamoto.
According to a recent BostonGlobe article by Jeffrey Sachs, Bitcoin is nothing but a bubble that will eventually burst. Mr. Sachs puts it thus:
It is hard to see bitcoin’s price surge as anything other than a bubble that will ultimately collapse. Bitcoin’s ostensible social function as an anonymous, nongovernmental means of payment carries big risks of its demise.
But earlier, a Daily Express news piece, a professional had been quoted to have said that, it is not Bitcoin that is the bubble as follows:
The ICO Rocket’s Przemek Skwirczynski has warned that the recent success of Bitcoin and other cryptocurrencies stem from the corruption of real currencies and distrust of financial institutions since the 2009 financial crisis.
Mr Skwirczynski told the Express.co.uk: “I would not call it a bubble, the way I see this is a reflection of the corruption of the real currencies.
“So if anything I think the real currencies are a bubble.”
Mr Skwirczynski said: “The idea behind Bitcoin was that a bank cannot dilute the currency that you have in your pocket.”
But as we witness the recovery of bitcoin price this year, most investors are optimistic that Bitcoin will rise to above $50,000.