The fact that Bitcoin had become the 6th largest currency in the world by market cap by the beginning of 2018, leaving behind prominent currencies like the Russian Ruble, British Pound and Swiss Franc, shows its increasing acceptance among the general public. However, its volatile nature continues to be one of the most pressing issues.
Amidst all of these concerns, the question that arises is whether Bitcoin is here to stay or is it all a big bubble that could pop any time?
Curious about an expert’s take on this, during the first Bitcoin Wednesday of 2018 on 3 January, we invited monetary economist and professor of economics at George Mason University, Lawrence H. White to give a presentation on the changes Bitcoin has gone through since inception, how it measures up compared to the existing traditional currencies and monetary systems, and what type of future it promises for tomorrow.
He says:
Bitcoin solved the double spending problem. When you receive Bitcoin, you know you are actually getting it and not something that belongs to somebody else at the same time. But that doesn’t explain why it has positive value. But the answer is pretty simple; it is supply and demand. There is a limited supply and there is a certain real demand for it. And the demand has been growing, and therefore the price has been going up.