It is no secret now that Bitcoin had a huge surge in price last week. This news has split the experts, with some investors being left really excited about the news, and others feeling incredibly nervous and unsure what this means for the future of Bitcoins.
According to a report in Bloomberg Businessweek, about 1,000 people own about forty percent of the world’s total Bitcoin, which equals out to approximately $105.6million per person. This obviously does not represent the average investor, but what is worrying is that these 1,000 people can significantly influence and decide the future of the average Bitcoin investor. The report states;
“As in any asset class, large individual holder and large institutional holders can and do collude to manipulate the price”.
So why do these people have such an influence on other investors?
Investors from around the world, and in particular India have cautioned investors to stay away from Bitcoins on a number of different occasions.
Thomas Carper, a Senior United States Senator said;
“Virtual currencies, perhaps most notably Bitcoin, have captured the imagination of some, struck fear among others, and confused the heck out of the rest of us”.
Investor Warren Buffett suggest that they have no fundamental value and once said back in 2014, that Bitcoin is a mirage and investors should avoid it. He said;
“It’s a method of transmitting money. It’s a very effective way of transmitting money and you can do it anonymously and all that. A cheque is a way of transmitting money too. Are cheques worth a whole lot of money just because they can transmit money? The idea that it has some huge intrinsic value is just a joke in my view.”
Earlier this year, he backed up his previous statement, saying;
“You can’t value Bitcoin because it is not a value-producing asset”.
Jamie Dimon, the CEO of JP Morgan Chase, highlights the risk of fraud, saying;
“Bitcoin is a fraud and will blow up…The currency isn’t going to work…You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart.”.
Finally, Jim Rogers, a renowned investor has also stayed away from cryptocurrencies on the whole; however, he did say;
“I wish I was smart enough to buy cryptocurrencies…it looks bubblish when you see the kind of price we see in Bitcoins…I certainly don’t know which one will come out on top, or if anyone comes out on top. But, I don’t own any.”.
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