Bitcoin was created in 2009 and it was the first cryptocurrency to use blockchain technology. It is the best digital currency and it is followed by Ethereum and Ripple. Even so, Nobel Prize Economist and Yale University Professor, Rober Shiller, warns that the popular digital coin could collapse for good.
Bitcoin: a double edged sword?
Shiller declared for CNBC that Bitcoin has no value for now. That is because there has been no consensus it has value and it is volatile in market. Its volatility has been proven after the currency reached a market value of $20,000 and afterwards it went as low as $10,000.
The economist will participate at the World Economic Forum in Davos, Switzerland and he has claimed that it is unclear for him what will happen to Bitcoin. He believes the cryptocurrency will either collapse, or last for a hundred years.
What does it mean to have value?
As the economist explained, even gold would not have value if there was no global consensus it has value.
Bitcoin has the same faith as tulips?
Shiller compared the Bitcoin situation to that of the tulips from Holland in the 1640s. This means that Bitcoin can sometimes be expensive, meaning a high market value, and sometimes it can touch rock bottom.
Very much like the tulips, Bitcoin’s price fell. The decision of the South Korean Government to ban open anonymous crypto trading has made investors get scared and sell out.
Regulations on cryptocurrencies are inevitable
Mark Wilson, CEO of Aviva believes that regulations on Bitcoin are inevitable worldwide and this is most likely the faith of most digital coins. France and Germany are preparing a joint crakddown on Bitcoin as well. Bruno Le Maire, the Finance Minister of France has declared that the two countries will start to regulate the coin after talking the situation at the next G20 summit.