During the 2007-2008 financial crash, some institutions were rated “too big to fail” because they were so closely linked to their deaths, which were predicted to be too catastrophic for the wider economy. Bitcoin, the cryptocurrency that has grown stronger over the past decade, is now valued at more than $ 56,000 and a market size of $ 70 billion, according to Coindesk.
In this respect, one could assume that Bitcoin, as a pioneering cryptocurrency, in which countless early investors became incredibly rich due to its meteoric rise, can be rated as “too big to fail”.
However, at the end of the weekend, when Bitcoin’s value fell 15 percent, some investors feared an impending crash might be in sight.
Now, some experts have stoked the fire, claiming Bitcoin isn’t too big to fail, and others are warning of an inevitable burst of its expanding bubble.
Bitstocks CTO David Arakelian told Express.co.uk: “The belief that currently popular financial investments are shielded from the” too big to fail “culture is narrow-minded – they just get harder when they eventually collapse.
“Wise investors know that utility creates long-term value – and that is exactly what Bitcoin Core is missing.
“Speculators will eventually throw it away because it is useless from a technological point of view and does nothing more than allow a store of value.”
Mike Hampson, founder and CEO of Bishopsgate Financial, agreed, telling Express.co.uk, “Bitcoin investing is extremely speculative.
“I would expect the price to remain massively volatile as the price of the Bitcoin asset fluctuates.
“After recently hitting a record high of £ 33,000, the price fell 25 percent in a matter of days.
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“I have long been a bitcoin skeptic and I firmly believe that this is a bubble that will eventually burst and leave a lot of people out of my pocket.”
However, others believe that Bitcoin now has such an impact that it will stay here for now.
Companies like Tesla are now accepting payments in Bitcoin and as it becomes more and more integrated into our daily lives it will be more difficult to move away from the public view.
Michael Kamerman, CEO of Skilling trading platform, told Express.co.uk: “Bitcoin will not step aside and play second fiddle, but will continue to be the most popular commodity to speculate on for an overall view of cryptocurrencies and blockchain technologies to obtain.
“As long as real use cases increase and more and more ‘traditional financial organizations’ use Bitcoin, the cryptocurrency will likely continue to be popular and find support from traders and investors.
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“You are seeing this now with the recent announcements from BNY Mellon, Paypal and Mastercard supporting the Bitcoin movement.”
Crypto experts Jaimie Sarah stated that the recent fluctuations are natural and that Bitcoin is the future of the currency.
She told Express.co.uk, “There is a huge difference between Bitcoin and other coins.
“Just look at all of the institutional investors and even companies like Tesla that are investing in Bitcoin – and even starting to receive payments in Bitcoin.
“There will continue to be ups and downs, but it won’t completely crash. I believe it’s the next global currency and most currencies have ups and downs.”