One of the more supportive voices within the financial world Peter Brandt has warned that Bitcoin’s low acceptance in the corporate sector might put future price predictions at risk. Brandt is a regular voice support from the financial world but is now cautioning against the future.
Brandt clearly is of the opinion that “Bitcoin is not living up to expectations” in the world as he demonstrated them during a recent Twitter discussion thread. He, however is clarifying profusely that it doesn’t mean that he hates it at all. He openly believes “Bitcoin-as-a-store-of-value” proposition and has been a proponent for the cryptocurrency. However, Brandt believes that Bitcoin is performing below par at the moment in terms of corporate and real world involvement and that could decrease the chances of future price rallies.
Brandt said:
What % of global commerce is conducted through cryptos? How many multi-national corps have line items in financials for BTC?…..,My only question is whether Bitcoin is actually living up to its high expectations. This question does NOT make me a hater
While the crypto adopters are overall sensitive towards negative news, it is true that mainstream adoption is proving to be a hard nut to crack. The actual share of crypto in the world commerce is quite low. However, it can be seen that more and more stores and commercial chains are open to the idea and may allow it especially if a financial crisis occurs in the future due to the Coronavirus and it becomes difficult to use conventional payment methods. The last time a financial crisis of this magnitude hit the world back in 1929 and then, banks had to close because they didn’t have the money to honour checks. Digital currency trumps fiat one but we are not in that situation now at the moment.
Lack of data can also be blamed for this assumption that Bitcoin’s transactional value is low because the currency is not easily observable and recordable as a means of transfer of value, meaning the actual ownership and usage could be much higher on ground. Nevertheless, the cryptocurrency is not out full force like a regular currency and is more or less relatable as a store of value for the future only.
While many of cryptocurrency traders, HODLers and blockchain proponents love the idea of presenting Bitcoin’s future, the fact remains it is still in the future and the current level of penetration is just not good enough to predict a long-term price increase like many have been expecting for a while. Peter Brandt is probably right here.
Image by Oleg Gamulinskiy from Pixabay
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