Credit Suisse Group AG CEO, Tidjane Thiam, said that Bitcoin is the “very definition of a bubble”. It is not the first nor the last banker that says that Bitcoin is a bubble and that it will explode. Today, Bitcoin surpassed $7400 dollars for the first time.
“From what we can identify, the only reason today to buy or sell bitcoin is to make money, which is the very definition of speculation and the very definition of a bubble,” he said in a conference in Zurich and quoted by Bloomberg.
But paying a closer attention to the facts, some enterprises are starting to use Bitcoin as a means of payment. In addition to it, some international payments are done with Bitcoins. In this way, international transactions are cheaper and faster. Then, Bitcoin is not necessary a speculative cryptocurrency but one with real value for the users.
Some criminal activities are carried through Bitcoin and its anonymity. “Most banks in the current state of regulation have little or no appetite to get involved in a currency which has such anti-money laundering challenges,” he said.
Bankers did Also Comment About Bitcoin… and Blockchain
Jamie Dimon, JP Morgan Chase CEO, commented about the famous cryptocurrency. He said that Bitcoin is a “fraud” and that it will eventually blow up. UBS Group AG Chairman, Axel Weber, agrees with Thiam. Weber believes that Bitcoin has no intrinsic value and that it does not have any underlying asset.
An important difference that bankers tend to do is between Blockchain and Bitcoin. Blockchain technology, the network behind Bitcoin and cryptocurrencies, has multiple uses. Blockchain can reduce transaction costs and make transfers faster. In a globalized world, with more transactions every single day, banks are trying to offer a better customer service.
Bank of America, JP Morgan, Credit Suisse and more than a hundred banks are working with Blockchain technology. The banks are working within a group in which they develop tools to track money transfers and transactions. About that, Jamie Dimon said that Blockchain technology will be used, but not to trade Bitcoin, but US dollars.
Bitcoin Keeps Growing
Bitcoin price arrived at $7450 dollars on November the 3rd after the CME adding Bitcoin futures before 2018. “Giving increasing client interest in the evolving cryptocurrency markets, we have decided to introduce a bitcoin futures contract”, said Terry Duffy, CME Group Chairman and CEO. “As the world’s largest regulated FX marketplace, CME Group is the natural home for this new vehicle that will provide investors with transparency, price discovery and risk transfer capabilities,” commented in a news report by CME Group.
Some experts believe that Bitcoin price will see a correction in the near future. It can happen in some days, or after the SegWit2x hard fork in mid November.