Bitcoin surpassed the $7,500 mark and hit a market cap of more than $200 billion, but some people still think that the digital currency’s rise is a bubble that will eventually pop. Among them is Credit Suisse CEO Tidjane Thiam, informs CCN.
“From what we can identify, the only reason today to buy or sell Bitcoin is to make money, which is the very definition of speculation and the very definition of a bubble,” said Thiam. He added that Bitcoin is currently presenting a number of challenges and users looking to make money should consider these aspects.
The bank has some serious issues with the way payments are made
The fact that it’s anonymous also concerns the Credit Suisse CEO. For Thiam, money-laundering risks are real and financial institutions should stay away from cryptocurrencies.
However, analysts believe that more institutional investors are going to enter the cryptocurrency business. CME Group recently announced that it will launch Bitcoin futures by year-end. The fact that the American financial market company intends to take such actions gives away the fact that analysts may actually be right.
Wall Street executives have recently taken a swing at Bitcoin, shouting out that it isn’t what it appears to be. Berkshire Hathaway CEO and billionaire investor Warren Buffet warned that there’s a “real bubble” in Bitcoin, giving the fact that the digital currency cannot be valued because it isn’t a value-producing asset.
Some companies completely forbid Bitcoin transactions
JP Morgan CEO Jamie Dimon was even more direct, claiming that the whole thing is a “fraud” and that he will fire anyone in his financial institution trading Bitcoin. Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund, shared the same opinion as the others, saying that Bitcoin is a “bubble” by his firm’s standards.
On the other hand, we have Goldman Sachs CEO Lloyd Blankfein, who said that despite having a “level of discomfort with it,” he’s not willing to trash talk Bitcoin, and Morgan Stanley CEO James Gorman, who claimed that the digital currency is “more than just a fad.”