In recent times, Bitcoin’s astonishing value hike to a huge $1 trillion has left many people shocked and surprised since Bitcoin’s price rose up by 350% and reached its all-time high of about $58k before plummeting back to less than $50k on Monday.
Bank of Boston’s President has shown his utter surprise at the success of bitcoin as a cryptocurrency even after being so volatile and lacking the confidence of the mass public.
Interview With The New York Times
Eric Rosengren is the president leading Fed Reserve Bank of Boston, and he spoke to The New York Times in an interview last week saying that he is astonished by the fact that bitcoin has been flourishing in the financial markets and gaining continuous strength despite the unfavourable conditions that it is in. He thinks that the pressure surrounding Bitcoin is inevitable, and it would bring consequences for Bitcoin.
He also pointed towards different countries such as China, which are developing digital currencies, for example, the digital yuan and stated that this could possibly put a lot of pressure on Bitcoin and the cryptocurrency market in general.
Eric said that a lot of countries and their central banks would provide digital currencies and make them accessible to the general public. When you have a digital currency that is being provided apart from the decentralized ones by the government, it gives a sense of stability and security to the people. So there would be no reason why people would use Bitcoin or any other cryptocurrency for that matter, according to him.
Impact Of Bitcoin
The recent instability of Bitcoin, however, is not being paid heed to by the cryptocurrency market analysts.
According to Paolo Ardoino, who is the CTO at Bitfinex, a cryptocurrency and Bitcoin exchange company, Bitcoin’s price volatility could startle many critics of the cryptocurrency. This also includes the people who recently failed to acknowledge Bitcoin being the largest cryptocurrency to play a role in the economy. He stated this in his comments made by email.
He says that criticisms like these don’t factor in the significance which Bitcoin and cryptocurrencies now have in the global financial markets, and being volatile is a part of a new emerging market.