Even though this has been a bit of a rocky week for our favoritecrypto, its still important to remember the positives, like CBOE and CME having recently launched futures trading, and the fact that central banks could be holding it in their reserves come next year.
No Option for Adoption
What they regard as key benefits, may actually be impediments to wider adoption. Users will include tech nerds, people obsessed about their privacy, people afraid of (hyper) inflation in traditional currencies, and people wanting to circumvent central banks for ideological or criminal reasons.
In addition, Brosens does not consider Bitcoin to be “a normal investmentasset”. This is because the decentralizedcurrency does not have “the full faith and credit” of centralized institutions such as governments and central banks to back it up. He went on to add:
Bitcoin’s Volatility Is Back in the Spotlight
The digital currency’s characteristic unpredictability was on full display this week as it went from record-breaking heights of nearly $20k to trading at an average of just over $13k. The report details Bitcoin’s drastic price surges and phenomenal growth for this year.
Bosens’ critique of the crypto didn’t end there though. He also said:
Bitcoin’s high-value today is based on shaky foundations. The only justification for investing in bitcoin today is the assumption that others are willing to buy Bitcoin at higher prices in the future.
— RT (@RT_com) December 23, 2017
His narrative continued:
Then again, we join the crowd of analysts observing typical bubble characteristics: the idea of an asset that is new, revolutionary, almost magic, hard to understand, but let’s invest anyway because it will become huge. This idea is a form of ‘this time is different’ thinking. ‘Yes, we know about all those precious bubbles that popped, but Bitcoin is really, really different.’ We are not so sure.
Even though the Amsterdam-based institution may not be alone in their thinking, evidence to the contrary can be seen in new developments in Belarus yesterday. The country will be legalizing both digital currencies and ICOs, and any revenue made from crypto– and blockchain-based endeavors will be tax exempt for five years.
Images courtesy of Reuters/Toussaint Kluiters/United Photos, ING, AdobeStock
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