The cryptocurrency world is rocked by something new every day. The market of expectations recently heated up as Bitcoin reached a fresh all-time high on Monday. Although some analysts predict that it will get $135,000, the issue of “Is this boom sustainable or just another speculative bubble?” has also been raised.
The dire caution of Steve Hanke
In a scathing social media post, economist Steve Hanke of Johns Hopkins University claimed that digital assets such as Bitcoin and Ethereum are a “roulette game.” He took issue with the practices of businesses that are substituting Treasuries for their profitable assets.
Bitcoin and other cryptocurrency assets, in Hanke’s opinion, have no business plan as they are worthless. Many seasoned investors may be surprised by his statement, but it serves as a warning of the dangers associated with cryptocurrency.
Hanke and Peter Schiff share similar opinions
Steve Hanke isn’t by himself. The strategy of crypto treasuries has also been characterised as “for fools” by prominent economist and gold advocate Peter Schiff. According to him, businesses pursuing scams like crypto treasuries that lack a business plan are merely making investments in the hopes of discovering more idiots.
Hanke wrote that Peter Schiff is “absolutely right” in support of his position. Additionally, he stated that while some lenders are currently offering loans secured by cryptocurrency, this practice is short-lived.
The second opinion of proponents
The proponents of cryptocurrency hold a different opinion from those economists who label it “fool’s gold.” According to them, bitcoin serves as a digital hedge that points the way away from the established financial system.
Supporters of frequently point to its transparency, blockchain technology, and inflation protection as its main advantages. They contend that businesses incorporating bitcoin into their treasuries are moving closer to achieving long-term stability and autonomy.
What direction will things go in the future
The key question now is whether Bitcoin’s explosive growth is stable or if it is only a fantasy that could collapse at any time. Does the market have any true worth, or is it just driven by feelings and expectations?
Disclaimer: This article is written for general information purposes only. The views expressed here are based on the author’s views and should not be considered investment advice. Investing in cryptocurrencies can be risky, so consult your financial advisor before making any decision.
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