Bitcoin has reached 4.500 dollars today for the first time in its history. Crypto-currency has quadrupled in value from December and experts begin to feel nervous.
Peter Schiff, a long-term rival in the idea that crypto-surveillance has long-term prospects, gives the rise as a further proof that Bitcoin is a bubble that is about to burst.
If you believe him, it is time to retire, the sooner the better. Schiff told CoinDesk that Bitcoin is an exaggeration:
There is certainly a lot of publicity about Bitcoin and encryption, and this is the case with bubbles in general. The psychology of the bubble causes it. Just feel that it will work, and the higher the price, the more convinced you are that you are right. But it does not go up because it will work. It climbs because of speculation.
It may be right, but TNW spoke to another specialist who had a completely different viewing angle. Adam Perlow, Chief Executive Officer of Zen Protocol, said:
People are not betting on Bitcoin with Bitcoin. It's an advantage. It is very good to be an asset and to offer value. If it's a bubble, it's very similar to the internet. It was also a bubble and burst. But the Internet is still here.
Schiff may not be so optimistic about Bitcoin because he is not a real fan of the move. She also said:
The main benefit of bitcoin (the only part of society where it is used for something other than speculation) is crime.
Perlow, however, on the question of the misconception that Bitcoin is only useful to criminals, gave a very different perspective:
Encryption can serve many great purposes that can not make a regular currency. We have seen India make the bulk of its currency, the highest denominations, illegal, are crazy about the coin-currencies. Everyone has digital wallets. In other places, where there may be a more complete government, it would be impossible to carry out financial transactions in any other way.
Crypto-currency, for example, can help finance aid for people who are in places where they can not report money they have or receive. It also solves many smaller problems, such as working with international companies without the need for banks to insure transactions. Bitcoin is currently the most popular encryption, and therefore has the greatest potential.
The real question, however, is how much Bitcoin will go up?
A popular investor known as masterluc, referred to as legendary by the encryption website Coin Telegraph, reports that we will hit 15.000 by December. But do not give so much importance, though there are many others who predict that the upward trend will continue, including Goldman Sachs, whose predictions have so far come true.
As for the above, you should be aware that you should not get your financial advice from a non-Bitcoin site.