Bitcoin hit $3,000 this month after a big correction down to $2,682 from $2,957 in the period of two days. CCN reported that billionaire Mark Cuban was calling bitcoin’s recent price surge a bubble. However, this is not the case since the cryptocurrency is showing an uptrend, recently standing on $2,831 and continuously going upwards.
According to Mourdoukoutas, one reason for the increasing investment into the cryptocurrency is the “ultra-low interest rate environment, which makes the trade of bitcoin an appealing proposition. In addition, there is a growing mistrust in the national currencies of multiple countries, following the government policies that pushed more investors into the cryptocurrency.
Mourdoukoutas said that one of these policies is the act when governments issue new treasury bonds at record low rates to cover the old debts with new ones. For example, Japan sells treasuries that yield almost nothing for the state, however, the country’s debts amount approximately the 250 percent of the GDP. The professor stated that China’s treasuries yield “something”, although, no one knows the exact amount of the “unofficial debt”.
According to the professor, bitcoin’s supply is expected to be limited to 21 million. Comparing to gold, there is no scarcity from the mineral since when the price of gold rises, it provides more incentive for gold miners to mine for gold.
source: https://www.cryptocoinsnews.com/economics-professor-bitcoin-will-make-plenty-millionaires/