The status of cryptocurrency has been an ongoing issue for some time now. On paper, Bitcoin and altcoins are speculative investments. Others see it as a store of value. Unsurprisingly, it’s mainly the financial elite who considers this an investment first and foremost.
Financial Elite and Bitcoin
Even though it seems most wealthy individuals oppose Bitcoin, that is not necessarily the case. In fact, it seems quite a few wealthy individuals are keeping close tabs on Bitcoin. As one would come to expect, they mainly perceive cryptocurrency as an investment vehicle. It takes money to make money, and Bitcoin is an interesting option in this regard.
Unfortunately, that also means Bitcoin faces some issues. If people perceive it as an investment, it is then not a currency for regular payments or money transfers. While cryptocurrencies can be used in this regard, it is not their primary use case by any means. That is an unfortunate development, albeit not a new situation by any means.
For the financial elite, the Bitcoin price is a top priority. Given the wild fluctuations throughout 2018, one would expect them to lose faith. Even so, there is a generally positive attitude toward cryptocurrencies and even initial coin offerings. This has become more apparent thanks to recent developments on Wall Street.
Public Skepticism Won’t Disappear
Although the financial elite is seemingly warming up to cryptocurrencies, the general public is a different matter. For the average person on the street, Bitcoin is neither an investment nor a currency. It is more of a niche or a fad which seemingly isn’t going away on its own accord. Changing that perception will be the biggest hurdle all cryptocurrencies need to overcome.
Additionally, this interest by the financial elite can be problematic in the long-term. If they take control of this market – just like with stocks and precious metals – cryptocurrencies can become all but off-limits to regular consumers. It will become a new plaything for Wall Street investors and speculators. That is not a favorable outcome for Bitcoin either, as it is designed to be “for the people.”
Even so, one could play devil’s advocate as well. Without a new influx of fresh capital, cryptocurrencies will not evolve and eventually lose traction. It seems a growing interest by the financial elite will serve as both a blessing and a curse rolled into one. Bitcoin has to become a currency again, rather than a store of value or investment vehicle.
Do you agree that having the financial elite view Bitcoin as an investment can be problematic? Let us know your thoughts in the comments below.
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