Will Bitcoin Exist In 10 Years?
Despite bitcoin’s gain in popularity, most economists and financial experts across the world call it a “bubble” and do not take kindly to this new form of money. So how about the views from a philosopher?
“ Bitcoin will not exist in 10 years, and some other cryptocurrencies are possible to take off then.” Professor of Philosophy at National Taiwan University Yuan Juzheng said.
Professor Yuan shared his insights into bitcoin investment at a private-equity firm’s annual meeting in Hangzhou last Saturday. He is also a scholar delving into the investment philosophy of billionaire liberal philanthropist George Soros.
He mentioned that bitcoin is not a state-backed currency, thus opening new possibilities for many. First, bitcoin is still synonymous with privacy, and it can facilitate confidential transactions and help the rich to hide their wealth. Second, people can use bitcoin to evade tax or do other illegal activities. Third, due to bitcoin hype, blockchain and cryptocurrency fever gets hotter-than-hot. Meanwhile, it poses regulatory challenges.
What is the main value of bitcoin?
“The main value of bitcoin lies in the kind of satisfaction that all bitcoin holders feel in calculating their earnings. It is very valuable to individuals.” Yuan said. “Fueled by the three above-mentioned ‘merits’, bicoin price begins to rise to nearly $20,000 , then when will it begin to plunge? Everyone can check it. When bitcoin futures started trading on Cboe Global Markets last December, we saw an immediate decline in its price.”
The scholar from Taiwan also emphasized the problems brought by bitcoin’s staggering rise. He said once bitcoin has a price, it will experience wild price moves in the demand-and-supply market.
“After bitcoin futures were launched, three problems arise: First, if bitcoin is measured by price, it is similar to a general commodity which can be traded. It only converts a concept into futures. Second, due to the spike in the value of bitcoin, it becomes a juicy target for cyber thieves and hackers. Only fools are left to mine bitcoins. Third, hacker attacked on Binance crypto exchange last Thursday, but it is very difficult to spot and arrest those criminals now.” Yuan said.
He warned that crypto investors should have a better understanding of bitcoin and its likes before investing, and figure out whether it is safe to pour money into the bitcoin space or it is the real commodity futures or not. Everyone should keep market uncertainty in mind.
“Obviously, Bitcoin will not exist in 10 years later, but some new cryptocurrencies will take off . The cryptocurrency world will turn out to be more diversified and progressive. And people’s thoughts will continue to evolve through brand new technologies.” Yuan concluded.