Jean Pierre Verster, who is well known for predicting the African Bank’s collapse, and is a portfolio manager at Fairtree Capital in South Africa, has come out in support of many who believe the latest rise in Bitcoin price is an indication of a bubble.
The false truth
In differentiating the value of Bitcoin compared to its founding technology, Vester has said the digital currency is a ‘false truth while the Blockchain technology on which it is built is a ‘true truth.’
Verster is one in a long line of investors that have said they will not be investing in digital currencies, for a raft of different reasons. But it is clear that the portfolio manager still sees the value in Blockchain technology, but adds that Bitcoin is not a wise investment right now.
“The new gold”
It is a common sentiment about the two commodities that are seen as stores of wealth, but also as a functioning, tradable commodities.
Gold and Bitcoin are similar because they are independent currencies which no government can control, which you can carry around and get value for in any territory, he said.
McCurrie, however, adds that gold’s establishment as a valuable commodity has been recognized for over 5,000 years, whereas Bitcoin has only been in existence for a couple of years at best.
McCurrie’s prediction was that if Bitcoin was to make it big, and become a true success, it would have to become legislated.
“Governments will never tolerate a separate monetary system outside of the formal banking system, so it will almost become illegal if it truly becomes big,” he said.
Digital currencies, especially at the heights of Bitcoin, have lived fairly unhindered by government regulation. However, new ICO’s are suffering vicious attacks by governments, notably in China.
The clampdown on ICOs is very different to the legislation that McCurrie is calling for, however, it may certainly also be aiding Bitcoin to gain legitimacy in a market that is being flooded by more and more digital currencies.