Where is the value of bitcoin?
Teunis Brosens, a senior economist at ING, said although extreme bitcoin concerns may not be so high in the future, it is possible to do any extremes.
Brosens thinks: "How much bitcoin is worth in the future largely depends on whether people are still interested in it in the future." If the user loses interest in it, the price of the net-worth currency may plunge to zero; however, If, in turn, global investor interest is doubled and fully tapped, its upturn is really just "just the beginning."
According to the most authoritative digital cryptocurrency rankings, "Coin Market Cap" data show that at current levels, bitcoin's market capitalization of about 315 billion US dollars. There are only a handful of companies in the S & P 500 that exceed this market value.
According to Brosens, the function of digital currency is in a distorted ledger called a "blockchain," so the biggest weakness it faces is the high transaction fee for digital currency, Or traditional payment methods such as credit cards, become less popular.
Morgan Stanley's bigwigs also said that the efficiency of Bitcoin transactions has become "hot potato" compared to the rapid transaction of credit cards, because bitcoin takes 10 minutes to process a transaction.
However, analysts believe that with the continuous development of network technology, this issue may be improved. But Brosens also notes that in the bitcoin ecosystem, so-called "miners" consume large amounts of electricity through "mining" calculations, which could also be the culprit for digital currency attacks. According to Morgan Stanley, the amount of energy currently consumed by bitcoin networks is equivalent to that of 2 million U.S. households.
"Governments and regulators may never like decentralized financial networks," Brosens writes. "After the negatives such as the price collapse, public protests ensued, which could trigger pressure from regulators "
In the United States, the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission have issued a series of announcements on this issue in the past few months. Among them, U.S. Securities and Exchange Commission chairman Clayton also made a tough statement. Clayton said: "Bitcoin is purely a fraud, and there is great volatility."
Bank of America Merrill Lynch conducted a survey of 172 global career fund managers in December. These "smartest brains on Wall Street" assets manage to reach $ 480 billion, of which 32% of respondents think that doing bitcoin is the month The most-traded deals outnumber Bitcoin's first debut list in September (26%) and overtake the October and November titles as Doerz.
The Wall Street Journal quoted analysts as pointing out that the current bitcoin market is notoriously inefficient. Futures not only have a high premium over the spot but also the spread between different trading platforms. CME futures on the first day of trading volume was significantly higher than Cboe Futures, may represent the agency's short-selling force will gradually show its influence.
Recently, there have been a number of officials from central banks or regulatory agencies warning about the risk of investing in bitcoin. Danish central bank governor Rod said that bitcoin is dangerous gambling and there is no future, investors should stay away. Singapore's central bank also believes that the soaring price of digital currencies is driven by speculation and faces a severe risk of collapse in the future. Officials from Korea's Financial Services Regulatory Authority and Taro Aso, Japan's finance minister, both stated that digital currencies such as bitcoin are not credible legal tender.
According to the well-known bitcoin media CoinTelegraph, Emil Oldenburg, co-founder and chief technology officer of bitcoin wallet supplier Bitcoin.com, has publicly stated that bitcoin's transaction costs are too high and transaction processing takes too long to sell itself All bitcoin, switched to more efficient bitcoin cash.
In addition, the world's fifth-largest encrypted currency Litecoin this year's increase reached an astonishing 7500%. However, just as the Litecoin currency rose, its founders have recently sold off all their Litecoin coins.
I see Bitcoin is that it can not become a legal currency, only as a collection, you would like to receive it!