Bitcoin has faced more criticism than any other virtual asset out there. The reason is not farfetched given that it is the first cryptocurrency and the most popular. Needless to say, those who were certain that the virtual asset will hit zero have been proven wrong. Since 2009, the reverse has been the case despite Bitcoin’s downward price trend during the first and second cryptocurrency winter
Niall Ferguson Admits His Opinion About Bitcoin in the Past Is Wrong
Niall Ferguson, a British economic and financial historian while at an event during the Australian Financial Review Business Summit reportedly said he was wrong to think that Bitcoin is a foolish financial investment. He had also believed that Blockchain technology is “unreliable” and “weird”. These conclusions were linked to his understanding of the history of financial innovation and fiat currencies
The historian also revealed that five years ago, his son encouraged him to buy Bitcoin. However, he was adamant about it which he currently regrets given the recent comments he has made. According to him, if he had listened to his son, he would have made a profit of 4,436% from an asset whose price was around $400 in 2016.
An Assumption that a Currency Based in Blockchain Will Have No Use
Other than changing his view about blockchain, the historian also said that he was wrong to have assumed that a currency that is based on blockchain technology will have no use. He had also believed that Bitcoin will become a complete delusion in the near future. Nonetheless, Ferguson is now confident that even though Bitcoin may have devalued greatly from its all-time high, its current price is still far away from zero.
The former critic is also of the opinion that Bitcoin can be the financial system of the future. He said that things that may matter in 10 years from now are those that are of a small scale. In this case, when the Bitcoin and the cryptocurrency market is compared with that of gold, stocks, and bonds, it is smaller.
In line with that, Ferguson said:
Whether its bitcoin or cryptocurrency generally or the massive revolution in online payments that is being achieved by the big Chinese tech companies, that’s the financial system of the future, and it is still small enough not to be systemically important in 2018.
Bitcoin Pessimists Change Their Opinion About the Virtual Asset
Asides from the historian, the opinion of many others have changed. Nikolaos Panigirtzoglou, a JP Morgan analyst who was once pessimistic about Bitcoin has a different opinion. BTCNN on February 7 informed of Panigirtzoglou’s stance that Bitcoin can still make a major comeback despite its recent performance.
Likewise, JPMorgan’s former CEO, Jamie Domin stated in 2015 that Bitcoin will not survive and people are wasting their time with digital currencies. It is worthy to note that the same company has launched JPM, a cryptocurrency that will be used to enable customers of the bank to carry out transactions.