Many are wondering, ‘is bitcoin just a bubble?.”
Tidjane Thiam, the Chief Executive Officer of Switzerland’s second-largest bank, Credit Suisse, has made his position known on the issue. The New York Times reports that the banking chief called Bitcoin’s anonymity a major “challenge” before saying, “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.”
Bitcoin reached a record high of $7,000, which happens to be seven times its value from the beginning of 2017. Other big bankers have similar views to Thiam’s, JPMorgan Chase & Co’s CEO, Jamie Dimon, recently called Bitcoin a “fraud” that will eventually implode. Of the most notable to comment on this “bubble” theory was the one and only billionaire investor Warren Buffett.
Criminal use of the cryptocurrency and their belief of criminals being able to hide their activities with its anonymity, is another big potential drawback bankers see from the cryptocurrency and its blockchain.
Thiam said, “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,”
Bitcoin’s new high has been all over the news, Thiam adds that he still expects interest in the world’s largest cryptocurrency to subside. Still, while bitcoin is being stiff-armed by most banking officials, banks are in a race to develop and implement blockchain technology in their systems.
Featured Image: twitter