Analytics / Forex and Crypto News
Despite the increasing adoption of Bitcoin by institutional investors, there are still enough skeptics who do not consider Bitcoin as a financial instrument. At the same time, some skeptics, for example, financier Peter Schiff, believe that BTC is an ordinary pyramid. Other skeptics are less aggressive. For example, BNP Paribas bank strategist Chi Lo believes that Bitcoin is a speculative instrument. He believes that Bitcoin cannot yet be classified as an asset class, since it does not act as money and is not a form of saving capital. Bitcoin cannot be called money cause the scales of the transactions where it acts as the payment instrument is too low. Bank strategist BNP Paribas views Bitcoin as a tool for speculators.
Bitcoin has the only plus that distinguishes it from the pyramid scheme, it is a limited supply. Limited supply is the largest catalyst for the price of Bitcoin. Unlike fiat currencies, which can be printed indefinitely, BTC mining will stop after 21 million coins are released.
On the other hand, the limited supply of Bitcoin could be a problem for Bitcoin, which will reduce the number of Bitcoin users due to the high price and make the cryptocurrency centralized and manageable. Governments will not allow the expansion of the crypto sphere and crush it if the scale of speculation in this market becomes threatening.
As the demand for cryptocurrencies grows and their scope increases, we will see tightening control over such instruments by regulators.