Bitcoin can be not in a bubble nevertheless additional digital currencies are “flooding the market with perishable supplies of worthless value,” according to the co-founder of financial technology company Glint.
Ben Davies told CNBC of which bitcoin does appear to be overinflated nevertheless of which of which obscures the bigger picture.
“Bitcoin can be not a bubble, albeit the item has all the hallmarks along with antecedents of which are the precursor to a bubble,” he said in an email to CNBC on Monday.
“The term bubble tends to indicate a cost no reasonable future outcome can justify. In cost terms, bitcoin along with altcoins (alternative cryptocurrencies) are in a bubble. In value terms, bitcoin can be not.”
Davies said of which, while the cost of bitcoin was based on speculative trade, its value was a different story.
“If you bet against bitcoin, you are betting against the exchange of value afforded by the internet,” he said. “The internet exchanges information through various protocols, just as bitcoin conveys an exchange of value of a not bad or service when the item’s spent. So if its utility can be increasing, the network value will continue to rise.”
Bitcoin’s cost edged up slightly Tuesday morning. the entire world’s largest digital currency was trading at $11,786.81 at 8:02 a.m. London time (3:02 a.m. ET), up around 1 percent for the session, according to CoinDesk data.
numerous big bank executives have referred to bitcoin as a “bubble” due to its sharp rise. The cost of the cryptocurrency has shot up more than 1,000 percent since the start of the year.