The rapid increase of global adoption
Over the last two years, Bitcoin has transformed its image of illicit dark internet money into a secure and digital gold. Bitcoin's public image changed dramatically because of a rapid increase in global adoption.
On a show hosted by CNBC, Cramer stated that the recent surge of Bitcoin price can be attributed to the mass purchase of Bitcoin by European banks to pay off hackers and ransomware distributors.
He said:
"I think it could because the European banks are frantically trying to buy them so they can pay off ransomware. It's a short-term way to be able to deal with cybersecurity. It is the way to pay off the bad guys.”
Demand from investors
More importantly, Cramer’s statement fails to consider the fact that Bitcoin is being utilized as a currency and safe haven asset more than it is being used as a lifeline to feed ransomware developers.
In the case of WannaCry ransomware, the biggest ransomware attack in history, the distributors earned less than $100,000. That is only 0.0012 percent of the European Bitcoin exchange market. Thus, to say that Bitcoin price is rising because of 0.0012 percent of traders from the fifth largest Bitcoin exchange market is not an accurate depiction of the surging Bitcoin price.
f Bitcoin enters the $1 mln region, it will be competing with the reserve currencies of the world.