Bank of England deputy governor Jon Cunliffe said on Wednesday that Bitcoin is not big enough to threaten the global economy. His says come after an incredible price increase in the famous cryptocurrency. On Wednesday, Bitcoin hit $11,400 dollars in some cryptocurrency exchanges after crossing the $10,000 dollars’ barrier.
Is Bitcoin Really Small for the World Economy?
At the beginning of the year, Bitcoin was worth just a fraction of what it is worth today. Its price was $960 dollars while now, at press time, is being traded at $10,900. Its market capitalization arrives at $186 billion dollars, and the cryptocurrency market value arrives at $330 billion dollars. “I would just say investors kind of need to do their homework,” told Mr Cunliffe to BBC Radio.
According to the Bank for International Settlements Bitcoin is worth more than the UK Pound or the Russian Ruble. Just five currencies perform better than Bitcoin, the Euro, the US Dollar, the Japanese Yen, the Chinese Yuan and the Indian Rupee. In January, the whole cryptocurrency market capitalization was $17 billion dollars.
Bitcoin Cash, Ethereum and Ripple also had really good performances compared to other currencies. They are worth more than the South African Rand or the Swedish Krona.
Mainstream Investors are Arriving at the Cryptocurrency Market
The Chicago Mercantile Exchange has announced that it will start to offer Bitcoin futures on December the 18th. This will allow institutional investors to hedge and bet against the cryptocurrency price. Opening doors for important investors means that the cryptocurrency market will receive a big support. Its market capitalization will grow pushed up by Bitcoin.
Nasdaq and other important hedge funds have decided to offer Bitcoin on their platforms. Bill Miller, Mike Novogratz are just examples of important investors betting on Bitcoin. Furthermore, different hedge funds are not only investing in Bitcoin but also in Ripple or other currencies. It is important to mark that investors are not only looking for Bitcoin, but they are also looking at the cryptocurrency market in general.
Jamie Dimon, JP Morgan Chase CEO, has commented in a negative way about Bitcoin several times. He said that people who invest in Bitcoin are stupid. This is something that is not in line with the JP Morgan team. One JP Morgan Strategist, Nikolaos Panigirtzoglou, has said that Bitcoin futures give legitimacy to Bitcoin.
“The prospective launch of Bitcoin futures contracts by established exchanges in particular has the potential to add legitimacy and this increase the appeal of the cryptocurrency market to both retail and institutional investors,” he has said.