Financial experts regarding Bitcoin – Bitcoin’s popularity should be taken more seriously into consideration. Few days ago, Cambridge Independent newspaper has made a report of the discussions about the growth of Bitcoin’s value among Cambridge University experts.
They are addressing some important issues that should be considered when entering this virtual coins world.
One of the most important things to consider is the environment, because the process of mining doesn’t have the best influence on it.
Bitcoin as a currency – After the explosion to nearly $20,000 on several markets, before it dropped these days, the most asked question was ‘is bitcoin a bubble?’. The main theory was that if something grows suddenly from a relatively small value, to a record value, it will probably go down as suddenly as it grew. This resembles to the idea of a soap bubble that grows until it pops.
The academists were a little skeptical when it came to expressing their opinions about Bitcoin. Larisa Yrovaya, finance lecturer has expressed her peremptory conclusions after her study that analyses the performance of the popular virtual coin. She added that the price of Bitcoin has been presumably blown out by speculative investments.
Bitcoin as an asset – Some people in Cambridge discussions see the situation differently. Michael Rauchs, CEO of Alternative Finances has said that Bitcoin might be a bubble, but that it is not supposed to pop as an usual bubble would do. He added that as an investment, it doesn’t have any resemblance to a bubble.
Yarovaya on the other hand is claiming that a currency without a real value is equal to zero. As a mean of investment, it is impossible that something that is intangible, to posses any specific value. Therefore, the cryptocurrency is going to break at one point because it doesn’t have any base to rely upon.
Bitcoin has lost almost 18% of its grown value in the past hours according to CoinMarketCap.