Ex-Morgan Stanley Economist Believes That Bitcoin Is a Dangerous Speculative Bubble
Many top economists from around the world have come forward to state their opinion on Bitcoin. A former Morgan Stanley economist believes that Bitcoin is one of the most dangerous speculative bubbles he has ever seen.
The Future of Bitcoin
As Bitcoin is constantly reaching a new all-time high price, many top economists and investors have come forward to predict how Bitcoin is going to perform in the future. The most prominent statement came from JPMorgan CEO Jamie Dimon, who stated that Bitcoin is a “a terrible store of value.” Of course, Jamie Dimon has a long history of bashing Bitcoin despite the fact that the company he is CEO of is dabbling in both Bitcoin and blockchain technology.
Prominent investor Mike Novogratz believes that Bitcoin and cryptocurrencies, in general, have a bright future ahead of them. Recently, Novogratz is predicting that Bitcoin may even hit as high as $40,000 per coin in the upcoming months. There is definitely a big hype around cryptocurrencies at the moment, and many investors are excited to see how Bitcoin will perform in the upcoming year.
A Dangerous Speculative Bubble
Some experts may be optimistic about the future of Bitcoin, but some believe that it’s going to have a bad ending. According to a recent article by CNBC, Stephen Roach, a former chief economist at Morgan Stanley and current Yale University senior fellow, is worried about the current hype around Bitcoin. Roach stated the following:
This is a dangerous speculative bubble by any shadow or stretch of the imagination.
He also added:
I’ve never seen a chart of a security where the price really has a vertical pattern to it. And bitcoin is the most vertical of any pattern I’ve ever seen in my career.
Stephen Roach believes that Bitcoin is currently a dangerous bubble that may burst any moment. The main reason behind his statement is the fact that Bitcoin has astronomically grown in a very short timeframe. One of the main problems with bubbles is that it’s often times very hard to predict when or even if they are going to burst. Some analysts believe that the upcoming Bitcoin futures by CME may be able to stabilize the current Bitcoin Bullrun and hopefully stabilize the price at a certain sustainable level.
What are your thoughts on Stephen Roach’s statement regarding Bitcoin? Do you think that Bitcoin is a dangerous speculative bubble? Let us know in the comments below!
Images courtesy of Pixabay.