Register with PP

Newsletter, Jobs & Event Alerts


Bitcoin – bit of a gamble

13 December 2017

Bitcoin’s rally may herald the dawn of the financial technology era but remains “a major gamble”, according to Nigel Green, founder and chief executive of deVere Group.

As the world’s largest cryptocurrency by market value reached a new lifetime high of $15,058 on Thursday, appreciating by more than $3,000 in 36 hours, outstripping most previous expectations, it has caught many experts and commentators off guard.

“The meteoric rise of Bitcoin underscores the demand and the need for digital currencies in today’s world. Bitcoin and others have identified this and are meeting those demands and needs and filling the void,” Green says.

“Whilst many Bitcoin investors are popping the champagne corks at the moment, some caution needs to be exercised too.

“Bitcoin remains a major gamble as it is very much an ‘unchartered waters’ asset – we’ve simply not experienced this before. Also, an asset that goes almost vertically up should typically raise alarm bells for investors.  In addition, many would argue that there’s limited underlying economic value.”

He adds: “But that said, the U.S. dollar is also a gamble.  America has 23 trillion in debts, so some would argue that its currency is also a risk.

“Of course, no-one knows for sure the short, medium, long-term future for Bitcoin.  But what we do know is that the blockchain technology that underpins it is revolutionary and is already changing the way the world handles money.

“This week’s rally has demonstrated without doubt that the already considerable marketplace for cryptocurrencies is growing and that it is likely to only grow at a faster pace in coming years.”

Green concludes: “Today’s world needs cryptocurrencies. One or two of the existing ones will succeed, whether it’s Bitcoin or not remains to be seen. But the dawn of the financial technology era has arrived.”


Do NOT follow this link or you will be banned from the site!