Investors Still Wary of Bitcoin
Jan 01, 2018 Posted / 2293 Views
Setting aside a massive December figure correction, Bitcoin has pushed its way into the minds of ordinary people all over the world.
Google stats for 2017 have Bitcoin as the 2nd most searched news term of the year, as everyone from plucky investors, crypto currency newbies & diehard technologists look for the latest news and worth updates on the lucrative crypto currency.
With a market capitalization of over $11 bln, Bitcoin has made many a millionaire with its rapid recognition in value this year. Investors flocked to buy Bitcoin during its most recent bull run which started in Nov which saw the cost of skyrocket to the ultimate high of $20,000.
The almost certain correction in the lead up to Christmas sent jitters through the market & many investors will have lamented the dramatic drop in price.
It's not surprising to hear economic analysts and business experts describe an apathy towards the market due to the volatility seen in recent weeks. Both big businesses and individual investors still seem wary of putting their money into crypto currencies.
Speaking to CNBC this week, American billionaire Tilman Fertitta, who made his wealth as a restauranteur, believes the ordinary man won’t go near Bitcoin until they have some insurance.
"They don't have the money. It's just paper. That's all Bitcoin is, is paper, but it's not guaranteed by the FDIC today. And until it's insured, a lot of people are never going to buy it.”
Nevertheless, the 60-year-old isn’t opposed to the concept of Bitcoin becoming a widely received payment process in the future, even by some of his companies, ranging from casinos, hotels to restaurants.
"I mean, I remember somebody walking into my office and saying, 'The world's going to change. There's this thing called the Internet.' And that wasn't that long ago. So we have to remember this. It's just something new, and everything moves at a quicker pace today."
Larger financial institutions have already entered the cryptocurrency fray after the launch of Bitcoin futures contracts on CBOE and CME trading markets. The NASDAQ and Goldman Sachs are also set to jump onboard in 2018 - paving the way for wider mainstream selection.
Nevertheless, there still seems to be a hesitation for bigger corporate players to invest some severe capital into the market.
In an interview with CNBC this week, head of currency and forex technology company FiREapps Wolfgang Koester said big corporations want a less speculative environment,
FiREapps provide insights into the likes of Google and Ericsson, but Koester says big firms will not invest in current crypto currencies and are waiting for state-issued digital currencies, backed by regulation.
"They are saying we can't get involved with Bitcoin, but we like the thought of Bitcoin and others. We like speedy transactions at a lower cost. They are waiting for governments to issue those digital currencies so that they can take advantage.”
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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