Bubble, Ponzi, tulip as well as trouble have been among the words used by crypto-critics over the past year as bitcoin powered by under $1,000 as well as passed the much talked about $10,000 marker.
Despite being talked down by some major financial names, not least JPMorgan CEO Jamie Dimon, the idea looks like cryptocurrencies could be here to stay.
Bitcoin has posted a return of over 900 percent since the start of the year with one technical trader saying the rise of bitcoin in 2017 can be the biggest bull market he has seen in over 40 years of working in finance.
David Shrier, academic as well as CEO of Distilled Analytics, told CNBC in which he has absolutely no doubt in which there can be feverish speculation going on with cryptocurrencies although in which in itself can be not a bad thing.
“There can be enough utility as well as utilization of bitcoin in which the idea will retain some kind of value, even if the cost settles down a bit. Amazon didn’t go to $0 when the dotcom bubble burst, although various other frothy stocks with no reality behind them did. Similarly, bitcoin won’t go to zero, although I do believe several these various other cryptocurrencies will fail,” Shrier said.
Dominic Williams, chief scientist at research group the DFINITY Project, can be also skeptical about the viability of initial coin offerings (ICOs) in particular, saying “only a fraction of the projects holding ICOs have any chance of success.” ICOs are a way for companies to raise money — people pay money in exchange for a token or digital currency. The token doesn’t usually give the investor equity inside the company. Instead, the idea can be traded or used to do something with the firm.