Former U.S. Treasury Secretary and economist Larry Summers says bitcoin is here to stay despite some concerns that it could be a bubble. The former secretary argues that bitcoin’s price swings are in fact a sign of its resilience.
In his latest comments on bitcoin, Summers, who became a senior advisor to Digital Currency Group in 2016, reiterates his stance on the crypto and the underlying technology. Before the new comments, Summers earlier predicted that the “financial industry will adopt the technology that underpins bitcoin.”
Still in his last Summers says of the cryptocurrency’s fixed supply and how this is a factor behind the current surge. The former secretary says:
I think people will go there, and if people go there, given the finiteness of the supply, that will be a factor in raising prices.
While Summers refuses to predict the future price of the cryptocurrency, he hints that it is likely to rise, and “institutions like it.”
Meanwhile, in addition to bitcoin’s steady supply, the former secretary is also quoted as suggesting factors such as bond yields could have an effect on the value of the cryptocurrency. According to Summers, as the amount made on bonds goes down, “people put less of their money into bonds and more of their money into other assets.”
Do you agree that bitcoin’s steady supply is a key factor attracting institutional investors? Tell us what you think in the comments section below.
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