Some attack Bitcoin, the others say 2014 will be the year of cryptocurrency. The world’s most famous digital coin might be considered a breakthrough and a solution by many, but it is definitely not a crowd pleaser.
Jamie Dimon is the most recent voice to speak against Bitcoin. The CEO of JP Morgan told CNBC that cryptocurrency “is a terrible store of value”. Besides, “it could be replicated over and over”, he added.
However, the worst part of all, in Dimon’s opinion, is that Bitcoin “doesn’t have the standing of a government”.
And honestly, (…) a lot of it is being used for illicit purposes. And people who will get upset with it is governments. Governments put a huge amount of pressure on banks: know who your client is, did you do real reviews of that. Obviously it’s almost impossible to do with something like that.
Nevertheless, Dimon, who is one of the most powerful bankers in the world, doesn’t think Bitcoin will end. He predicts cryptocurrency will be turned into “a payment system to follow the same standards as the other payment systems and that will probably be the end of them”.
Robert Shiller, 2013 Nobel Prize winner in Economics, is another opponent. The expert in the nature of market excesses considers the virtual currency’s massive jump a “bubble”. Business Insider quotes Shiller saying that “there is no question about it. It’s just an amazing example of a bubble“.
“I’m amazed by how people are so excited about it and I tell my students ‘no, it’s not such a great idea'”, the economist added while talking at the World Economic Forum in Davos, Switzerland.
However, for the billionaire Richard Branson Bitcoin is “exciting”. He believes there will be a global currency, whether its Bitcoin or not, that will “take on Jamie Dimon and the other banks”.
“I think having a global currency where you don’t have to spend all the money changing your currencies is admirable and whoever is behind Bitcoin was brilliant. It was a brilliant first step“, he recently told CNBC.
Also disagreeing with JP Morgan’s CEO, among others, is Marc Andreessen. The co-founder of venture capital firm Andreessen Horowitz and well-known entrepreneur stands on the other side of the table when it comes to Bitcoin’s future and he recently showed that in an essay entitled “Why Bitcoin Matters” and published by The New York Times.
Andreessen truly believes 2014 will be the year of Bitcoin’s ultimate expansion. “The coming years will be a period of great drama and excitement revolving around this new technology”, he wrote.
Bitcoin at its most fundamental level is a breakthrough in computer science – one that builds on 20 years of research into cryptographic currency, and 40 years of research in cryptography, by thousands of researchers around the world.
It is known that Andreessen’s company is deeply invested in Bitcoin startups, so his stance regarding digital money is understandably positive. But, on the other side, Dimon is a banker who deals with fiat currency, so his vision could also be considered compromised.
Bitcoin has had its fair share of fans and critics, some more famous than others, and not even its booming evolution is going to change that. Take Paul Krugman’s example, as well. The Nobel Prize winner took the time to criticize Bitcoin in the past, claiming its creation process is a “social waste”.
The future will tell us whether bitcoin is a great invention.