Daily Management Review

Credit Suisse: bitcoin is a bubble


11/03/2017


Recently, bitcoin has updated a new historical maximum, but many experts still consider the crypto market a bubble.



Cayambe
Cayambe
Speculation around bitcoin is "a clear indication of the bubble," said Chief Executive Officer of the Swiss bank Credit Suisse Tidjane Thiam.

The rate of bitcoin on Thursday exceeded $ 7,000 for the first time. Since the beginning of the year, the value of the crypto currency has soared more than 600%.

"From what we see, the only reason for buying or selling bitcoin is profit - this is an accurate indication of speculation and an accurate indication of a "bubble", said Thiam, speaking at a conference in Zurich on Thursday.

The history of the financial industry shows that such speculation "rarely ends well," he added.

He noted that bankers avoid bitcoin, fearing that criminal circles may use the crypto currency for their own purposes by. "The interest of many banks to crypto-currency under the current state of regulation is very small or nonexistent, given the existence of such a problem as its possible use for money laundering," says Thiam.

Earlier this year, the head of JPMorgan Chase & Co. James Daymon called bitcoin "fraud", and the chairman of the board of UBS Axel Weber said that bitcoin has no "factual value." Despite the fact that the world's leading banks still avoid crypto-currencies, they are actively developing blockchain technologies, on which crypto-currencies are based. Credit Suisse is among more than 100 banks operating within the framework of the R3 consortium, which was created to find ways to use blockchain to track data on transfers of money and other transactions.

source: reuters.com






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