Cryptocurrency chasm widens as “cryptics” see Bitcoin breach $10,000

Economists all over the world are stepping up their anti-crypto warnings as Bitcoin breached $10,000 for the first time in its history today, mere days after breaching $8,000 a coin.

But there are obviously big promoters of the cryptocurrency phenomenon as well, especially from those that have nothing to lose, such as trading platforms and brokerages.

One senior executive from a Hong-Kong-based trading platform says that Bitcoin could possibly reach $50,000 by 2018.

But others are not as optimistic, such as bankers and economists. Here’s what they’re saying:

It’s something that has no intrinsic value,” he said on the sidelines of a conference in Paris this week.

“It could collapse from one day to the next. I would be completely against French banks, for example, investing in bitcoin.” – Jean Tirole, Nobel Laureate

“Bitcoin? It’s about ‘Uber-ising’ currency, about not having a central bank that decides the price.” Ludovic Subran, chief economist at credit insurer Euler Herme.

“Think of countries with weak institutions and unstable national currencies. Instead of adopting the currency of another country — such as the US dollar — some of these economies might see a growing use of virtual currencies. Call it dollarization 2.0.”  Christine Lagarde, head of the International Monetary Fund

There have long been critics of crypto. In fact, these “cryptics” have been around since Bitcoin was struggling to get past $1. But there is now a much clearer divide between supporters of the crypto movement and its detractors.

On the one hand, there is scathing criticism about cryptocurrencies like Bitcoin. On the other, mainstream investors are now seriously looking at how not to “miss the bus”, as it were.

Only time will tell whether or not the Bitcoin and cryptocurrency phenomenon are, in fact, a bubble waiting to explode, or whether a new economy will emerge that will ultimately rival traditional securities.

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