(01 DECEMBER 2017)DAILY MARKET BRIEF 2:Bitcoin stabilizes below 10k

(01 DECEMBER 2017)DAILY MARKET BRIEF 2:Bitcoin stabilizes below 10k

1 December 2017, 12:35
Jiming Huang

Now that the Bitcoin has reached 10k dollar. Speculation regarding its futures are reaching a climax. Some sees it at 1 million dollar like John Mcafee who in a tweet declared that he was increasing its forecast on the digital currency. Some other like Jamie Dimon said “Bitcoin was a fraud”, forgetting that JP Morgan was involved in the Libor scandal.

Others are also very suspicious like the 2014 Nobel Prize, Jean Tirole, who is concerned about the possible financial bubble that Bitcoin represents. Unfortunately we did not hear him yet about the massive debt from G10 countries. He then added that he is afraid that money is being privatised. We should recall that the Fed is a private bank that control the issuance of any dollar. Is there any reason to be afraid of the Fed in this case?

In our view, even though the Bitcoin technology is not perfect, very low transaction speed and high transactions fees, the digital currency has a strong advantage. I am not talking about the ability to store and transfer value but about the strong acceptance rate that makes it a strong investment over the future. Anyone can create a blockchain but there is almost no chance that it becomes mainstream as the Bitcoin.

By Yann Quelenn

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