The chief economist for Dutch banking giant ING says Bitcoin will be limited to a cryptocurrency for “tech nerds, people obsessed about their privacy, [and] people afraid of (hyper) inflation of traditional currencies,” among others.
He says some of the features people say are strengths such as lack of a central intermediary will keep it out of reach of mainstream audience. This is in addition to volatility owes which makes it a poor method of payment for most people.
“In the long term, bitcoin has little to offer to a wider audience. It will likely return to being a niche product for a select group of enthusiasts”.
He says Bitcoin’s future price relies on pure speculation and is hard to appraise its value.
“Investing in Bitcoin today is like investing in a foreign currency. Else gold hoping that at some point in the future, one will be able to sell it again. This is just plain speculation any sound business will want to hedge their foreign currency exposure.”
He said although cryptocurrencies could extend networks and can create value for their users. Thus, their open-source nature makes them ill-suited for mass market adoption because it can be a fork and copy paste easily.
He, however, said blockchain is an impressive technology whose use can bring progress in a variety of fields including finance, healthcare, notary, and voting.