Credit Suisse CEO, Tidjane Thiam, is most skeptical about bitcoin. He described speculation around the cryptocurrency as the “very definition of a bubble,” as bitcoin price exceeded $7,000 for the first time on November 2.
Speaking at a news conference in Zurich on Thursday, Thiam said:
"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."
Mr. Thiam also noted that such speculation has “rarely led to a happy end" in the history of finance.
He also added that bankers are staying away of bitcoin out of fear that criminals could use its anonymity for their illegal activities.
“Most banks in the current state of regulation have little or no appetite to get involved in a currency which has such anti-money laundering challenges,” he said.
Bitcoin has seen unprecedented growth in the last few weeks due to positive news but also Amazon rumors and pure investor hype.
This week, the world’s largest exchange owner, CME Group, announced plans to introduce bitcoin futures by the end of 2017 due to high demand from clients. This development will push Bitcoin even closer to the mainstream because it will be easier for investors to trade on it without owning bitcoin directly.
On the other hand, there are many -especially in the banking sector- who believe that Bitcoin price is pumped merely by pure speculation drawing parallels with the infamous Tulip-mania bubble during 1636 – 1637. Nevertheless, there might be reasons why Bitcoin would prove not a bubble.
What do you think? Is Bitcoin a bubble or not?