Bitcoin: French economist predicts day of reckoning - KDTV6 CYPTO NEWS

Tuesday, December 5, 2017

Bitcoin: French economist predicts day of reckoning

It’s been called the “queen of cryptocurrencies” and the biggest bubble in the world. Bitcoin, launched in January 2009, has gained astonishing momentum this year.

More than 100,000 internet sites, including PayPal, WordPress and the US travel giant Expedia, now accept it and NGOs such as the Red Cross and Greenpeace accept donations in Bitcoin.

At the Maison du Bitcoin in Paris’s 2nd district, thee cyptocurrency can be purchased with a credit card and have the transaction recorded on a smartphone. Queues formed there during the last week of November, as the exchange rate for Bitcoin rose to an all-time high of $11,000.

Some 50 shops in the nearby Passage du Grand-Cerf, also known as “Bitcoin Boulevard”, post signs saying they accept the pseudo-money.

In the US, the Chicago Mercantile Exchange is to begin quoting futures contracts in Bitcoin this month. Goldman Sachs is considering providing Bitcoin to interested institutional investors, according to the Wall Street Journal.

The spike in the Bitcoin rate on November 29th led two Nobel prize-winning economists, Joseph Stiglitz and Jean Tirole, to issue grave warnings to speculators. Stiglitz told Bloomberg Television “it ought to be outlawed … It doesn’t serve any socially useful function”.

Tirole said investors, banks, insurance companies and pension funds should be prevented from building exposures to these instruments.

On Monday the chairman of France’s market regulator denounced Bitcoin as a “dangerous illusion” and a tool for criminals. “It’s a way to purchase illicit goods, it’s a way to launder illicit income, it’s a way to develop and pay for cybercrimes and it’s a pure empty commodity,” Robert Ophele, chairman of the Autorite des Marches Financiers, said in a Bloomberg Television interview from Tokyo. 
“If it were a currency, it would be a very bad one.”



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