Cryptocurrencies will not be recognized as a full-fledged currency because of their volatility, and only a few exchanges will be able to enrich themselves with fluctuations in their exchange rates, economist Andy Se said.
Bitcoin is primarily a gambling tool for the Chinese, Koreans and Japanese," Xie told The Korea Times. - Although many argue that it can replace a fiat currency, it is impossible because of its huge volatility.
A former economist at Morgan Stanley is known as the man who predicted the 1997-1998 Asian currency crisis and has long been warning of the serious consequences of this event.
"The cryptocurrency will never be recognized as the official currency, as states cannot issue their bonds in it. Volatility can bankrupt such states," he said.
Cryptocurrency project Facebook Seh considers a cunning plan aimed at attracting users to the company's products. "Facebook's Libra should be bad news for Bitcoin, as it will increase the supply of substitutes. But there is a psychological effect - people realize that the cryptocurrency is becoming more legitimate, and once again they enter the market," Se said.
According to the economist, Bitcoin is unlikely to be able to renew its own maximum above $20,000, as Wall Street traders will not allow it. "Wall Street organized a futures market in Chicago. Traders there can lower the price when it rises too high. They will lower it until people in East Asia panic and run away," Se said. - In fact, they make money in East Asia. They're gonna make it work so the game goes on. East Asians lose about $100 billion in gambling every year. Cryptocurrencies are swallowing the business. In time, you will be able to see how the real casinos will close.
Is cryptocurrency gambling? what do you think?
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