Bank of England Deputy Claims Bitcoin ‘Too Small’ to Threaten World Economy

Ashour Iesho · November 29, 2017 · 3:15 pm

Bitcoin may have passed the $11,000 mark, but a deputy governor at the Bank of England believes that the cryptocurrency is no threat to the world economy.

The Astronomical Rise of Bitcoin

The Astronomical Rise of Bitcoin

In the last couple of days, Bitcoin has become one of the most popular topics in the world. As the digital cryptocurrency is surpassed the $11,000 price mark, many analysts and experts are speculating how much further it’s going to grow.

The famous investor and billionaire, Mike Novogratz successfully predicted that Bitcoin would reach as high as $10,000 within 6 weeks. His latest prediction is forecasting Bitcoin’s price to reach $40,000 in the next 13 months. Novogratz isn’t the only investor that sees Bitcoin and the cryptocurrency market to continue growing in the coming years. In a recent article by CNBC, strategist and co-founder of Fundstrat Global Advisors Tom Lee predicted that Bitcoin may even hit the price of $100,000 each once it captures 10-15% of the current gold market:

We think over the next 10 years, this new generation of millennials are going to view trust as a replacement for gold. So, bitcoin is essentially digital gold for another generation.

Many traders and investors believe that the cryptocurrency market has a lot of potential to offer in the next couple of years.

Bitcoin is Not a Threat

Bitcoin is Not a Threat

The popular digital currency may currently be on the top of the world now, but many experts have started speculating on how the currency might change or influence the current and future world economy. According to a new article in The Guardian, Sir Jon Cunliffe, deputy governor at the Bank Of England, stated that the decentralized cryptocurrency is not a threat to the current world economy and financial institutions.

This is not at a size where it’s a macroeconomic risk to the global economy, but when prices are moving like that, my view would be investors need to do their homework.

He also added:

This is not a currency in the accepted sense. There’s no central bank that stands behind it. For me it’s much more like a commodity.

As Bitcoin and other cryptocurrencies continue to grow in market volume and popularity, it will become increasingly clear how they will globally affect the world economy.

What are your thoughts on Sir Jon Cunliffe’s opinion on Bitcoin? Do you agree that Bitcoin is currently no threat to the world economy? Let us know in the comments below!

Images courtesy of Pixabay, Shutterstock

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