Rewind just ten short years ago and no one had heard the word “Bitcoin.” Even after it was first released it went largely unnoticed. It was mocked by professional Wall Street types (some still do mock it), and the public just wasn’t educated as to what it was for the most part. Fast forward to present day and it seems that everyone is talking about Bitcoin.
Not only is the crypto-currency accepted at a large number of both brick and mortar as well as online retailers, but it is something that people trade much like a stock, to speculate on its value and make a profit for themselves. While it has been rising in value, some have started to wonder if there is in fact value to this crypto-currency in the long run. MarketGBP could offer valuable service.
The Bearish View
To say that Paul Krugman has a bearish view on Bitcoin is an understatement. He is so opposed to the crypto-currency that he says there is no value to it at all. Krugman believes that Bitcoin is worthless and eventually will end up in the dustbin of history. He says that it is the “anti-social network” and does not increase user freedom as it proclaims that it will.
The fact that Bitcoin is not tied to any particular asset of value is a concern for Krugman. He prefers to invest in something that he can see a direct tie-in to value. He also doesn’t like the fact that there is no central bank or other organization that actually regulates Bitcoin as there are for all other currencies.
He is quick to point out when Bitcoin is falling that his views on the currency have not changed. The question is now that it is starting to rise again will he hold the same views?
The Bullish Case
As just explained, Bitcoin is actually on a bit of an upswing once again. As a matter of fact, the currency is up by around ten percent just since Tax Day.
It had taken a hit since late last year, but the bulls are back in town for Bitcoin. Suddenly, it is a popular investment again as the stock market continues to swing back and forth wildly. It seems that some people are more comfortable trusting their money in Bitcoin than they are in the market as it stands right now.
There are still some regulatory fears regarding Bitcoin in the United States, but many other countries are opening the doors up wide for this currency. They see it as something that they want their citizens to be trading in. They believe that it is just like any other currency in a sense. They also see the potential for new sources of tax revenue as a very good thing.
Bitcoin is going to be the source of endless debates in coming years. We are just at the tip of the iceberg as it stands right now. It could be a crypto-currency revolution that sparks greater understanding of this currency and greater growth in its value. Then again, Paul Krugman might have been right all along and this thing could be doomed to the dustbin of history. A lot of this will have to do with how the public treats Bitcoin in the future.