Many representatives of the standard finance industry are continuing to criticize bitcoin. In recent days, CNBC has spoken with among others David Gledhill of DBS, Interactive Brokers’ Thomas Peterffy, and Morgan Stanley’s James Gorman – all of whom has made discouraging statements concerning bitcoin.
Also Study: Real Estate Listings Use Bitcoin to Garner Publicity
David Gledhill, the group chief data officer at DBS, has called bitcoin a “Ponzi scheme.” Also identified as The Improvement Bank of Singapore Restricted, DBS is multinational banking institutions headquartered in Singapore that services several countries in the Asian region. Mr. Gledhill criticized the fees linked with bitcoin transactions, describing such as “incredibly expensive.”
Mr. Gledhill told media “we don’t consider DBS being in [bitcoin] correct now is going to generate a competitive advantage for us.” Rather, the DBS representative stated that “right now, it is watch and find out.”
The Chairman and Chief Executive Officer of Morgan Stanley, James Gorman, has described bitcoin as “punching above its weight.” Mr. Gorman expressed his opinion that bitcoin “doesn’t quite deserve the attention it is receiving,” nevertheless conceded that “as acceptance is increasing with bitcoin, and usability is increasing, clearly it’s not going away.”
Mr. Gorman criticized the extremely speculative nature of bitcoin, stating “something that goes up 700 percent in a year – it’s by definition speculative. So anyone who thinks they’re purchasing one thing that it’s a stable investment is deluding themselves. It may well go up one more 700 percent, but it could easily not.”
Mr. Gorman also emphasized his concerns relating to the use of bitcoin by “people who want to use currencies on [an] anonymous basis for incorrect purposes,” adding “will the regulators and the central banks just watch this from a distance? I’m not so sure.”
Thomas Peterffy, the chairman of Interactive Brokers, has stated that though he personally does not oppose individuals trading bitcoin, he believes cryptocurrencies must be separated from the “real economy.” Mr. Peterffy stated “I consider bitcoin and other cryptocurrencies are fantastic suggestions. They ought to be allowed to be traded freely and employed freely to uncover their appropriate function in the economy… What I am objecting to is linking bitcoin and other cryptocurrencies by federal regulations to the actual economy, which would come about if we had been to clear bitcoin along with other goods in the identical trading residence.”
Mr. Peterffy is concerned that embedding cryptocurrency into said “real” economy could expose standard markets to the volatility of bitcoin. Mr. Peterffy stated “bitcoin has risen by 1,000 percent over the last year. It went from $700 to $7,000 – there is nothing at all to say it wouldn’t go to $70,000… It could bring down the whole economy.”
On the 14th of November, Mr. Peterffy took out a full-page ad in The Wall Street Journal to publish an open letter warning the Commodity Futures Trading Commission (CFTC) chairman Christopher Giancarlo as to the “dangers of clearing bitcoin and cryptocurrency derivatives in [the] exact same organization as other products” in reference to CME’s upcoming launch of bitcoin futures trading.
What do you feel of the criticisms created relating to bitcoin? Share your thoughts in the comments section beneath!
Pictures courtesy of Shutterstock, DBS, Wikipedia, Interactive Brokers
Need to have to calculate your bitcoin holdings? Verify ourtools section.
Published at Thu, 16 Nov 2017 21:55:55 +0000