Bitcoin reached a lifetime high valuation today, heralding the ‘dawn of the financial technology era’, though it remains a ‘major gamble’, says deVere chief executive and founder Nigel Green.
Green, pictured left, paid tribute to Bitcoin’s “impressive current run”, saying that the digital currency was “leaping over one psychological hurdle after another”, and outstripping most previous expectations.
It has caught many experts and commentators off guard, such as JP Morgan head Jamie Dimon who has dismissed it as a “fraud”, and Vanguard founder Jack Bogle, who last week told investors to “avoid it like the plague”.
Green, however, was more upbeat, and instead saw that the new value height underscored the fact that the cryptocurrency is here to stay.
“The meteoric rise of Bitcoin underscores the demand and the need for digital currencies in today’s world,” he said.
“Bitcoin and others have identified this and are meeting those demands and needs and filling the void.
“Whilst many Bitcoin investors are popping the champagne corks at the moment, some caution needs to be exercised too.
“Bitcoin remains a major gamble as it is very much an ‘unchartered waters’ asset – we’ve simply not experienced this before.
“Also, an asset that goes almost vertically up should typically raise alarm bells for investors.
“In addition, many would argue that there’s limited underlying economic value.
“But that said, the US dollar is also a gamble.
America has US$23 trillion in debts, so some would argue that its currency is also a risk.”
“Of course, no-one knows for sure the short, medium, long-term future for Bitcoin. But what we do know is that the blockchain technology that underpins it is revolutionary and is already changing the way the world handles money.
“This week’s rally has demonstrated without doubt that the already considerable marketplace for cryptocurrencies is growing and that it is likely to only grow at a faster pace in coming years.
“As such, Jamie Dimon’s [CEO of JP Morgan] steadfast dismissal of Bitcoin is totally wrong.”
The deVere CEO concluded: “Today’s world needs cryptocurrencies. One or two of the existing ones will succeed, whether it’s Bitcoin or not remains to be seen.
“But the dawn of the financial technology era has arrived.”