Sir Jon Cunliffe, Bank of England Deputy Governor, has described that, the leading cryptocurrency Bitcoin poses no real warning to the global economy and financial institutions despite its current phenomenal performance in the market. The most famous digital currency has recently surpassed the $11,000 level, as of end of November 2017.
In an interview with BBC Radio 5 Live, Cunliffe reasoned out that Bitcoin was too small to present any warning to the worldwide economy. He included that the investors should do a comprehensive analysis of the reasons behind the virtual currencies phenomenal rise to avoid risks.
“This is not at a size where it’s a macroeconomic risk to the global economy, but when prices are moving like that, my view would be investors need to do their homework. This is not a currency in the accepted sense. There’s no central bank that stands behind it. For me, it’s much more like a commodity.”
Bitcoin’s Amazing Performance
Over the past few weeks, Bitcoin has reported an unprecedented price rise, which has led many analysts and experts to predict how much it will grow in the future. Famous investor and billionaire Mike Novogratz has made a new forecast that Bitcoin will reach a price of $ 40,000 in the next 13 months after successfully imagining that virtual currency could hit $ 10,000 in six weeks.
In his future, fundraising and co-founder Tom Lee, Fundstrat Global Advisors, said that Bitcoin could reach $ 100,000 per tonne if he could successfully capture 10-15 percent of the current gold market.
“We think over the next 10 years, this new generation of millennials are going to view trust as a replacement for gold. So, Bitcoin is essentially digital gold for another generation.”