Another Wall Street giant, John Bogle, the founder of Vanguard group, joined the club of bitcoin bashers!!
It has been eight years since bitcoin is in existence now. It crossed $10,000 on 29 November, 2017. Some of the big wall street investors are speculating it to surpass $40,000 in 2018. (Considering the 1100% growth it experienced in 2017).
But, still there is huge difference in opinions among wall street people.
A lot of investing tycoons have shown their disbelief in bitcoin, and recently, the Wall Street magnate John Bogle joined the club of bitcoin bashers.
image source google
The 88 years old founder John C. Bogle [ The Vanguard group is an American investment management company which manages over $4.4 trillion in assets. (Source wikipedia) ], was present at a Council on Foreign Relations event in New York. When an audience member wanted to know his opinion on bitcoin, he replied :
"Avoid bitcoin like the plague. Did I make myself clear?"
“It’s crazy to invest in the digital asset,” he said, adding:
"Bitcoin may well go to $20,000 but that won’t prove I’m wrong. When it gets back to $100, we’ll talk."
Now, some people may say that he is just so traditional thinking, he can't accept the new changes in society. Yes, after all, he's only got maybe 60 years experience with trading... he doesn't know shit about the markets, isn't it.
Jokes apart, maybe it is true that he doesn't know about the endless opportunities blockchain and decentralised systems provide. But, the fact that bitcoin has huge flaws in it as a virtual currency cannot be overlooked.
Cryptocurrencies have a great future, and so does the blockchain technology as it can solve some of the major problems in the society, especially in the financial sector. But bitcoin as a currency has some serious problems in it, and there are already better substitutes available and also being made daily.
image source google
Cryptocurrencies are still is their infancy and although they are being used as investment, the actual problems which cryptocurrencies can solve, still require some groundbreaking development.
A lot of big companies like IBM, Microsoft, Bank of America and government organisations across the globe have started showing active interest and contribution to the Blockchain. However, most of them are just because of peer pressure and creating a lot of hype. But this has helped to build a positive environment around acceptance of cryptocurrency, and Bitcoin had huge advantage of the situation.
The volatility in price, high transaction fee, slow transactions, are some of the problems of Bitcoin, among others.
The popularity of bitcoin is backed by the media, and as more and more people come to know about someone getting rich by buying bitcoins a few years earlier, they are feeling the fear of being left behind, and thus investing without even having a basic understanding of the technology.
image source google
For me, i am a supporter of decentralisation and cryptocurrencies, but i see them more as a solution to the old systems of payments, than an investment. Although, bitcoin prices will most likely to go up for next few months at least (if there is no big hack), but in the long term, the better technology will succeed, as media attention doesn't take much time to change.
Please don't take any of this as investment advice.
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