Cryptocurrencies will never be recognized as legal currencies due to their high volatility, and only a few large exchanges can win from exchange rate fluctuations. This opinion was expressed in a conversation with The Korea Times economist and financial markets expert Andy Xie.
Despite the fact that many claim that cryptocurrencies can replace Fiat, high volatility makes it impossible. Bitcoin is, above all, a gaming tool for the Chinese, Koreans and Japanese … The people of Asia annually lose about $ 100 billion in gambling. Cryptocurrencies absorb this business and we will soon see how real casinos will close.
He also believes that the first cryptocurrency will not be able to surpass its own price maximum, and Wall Street traders will prevent this.
Wall Street created the Chicago futures market. Traders here may drop the price when it rises too high. They will lower it until people in East Asia panic and run away. And then they will start to cash money, the economist said.
Xie spoke out about the sensational cryptocurrency initiative from Facebook. So, he is convinced that Libra is a “smart marketing scheme” that attracts more and more potential users to the company’s products.
Facebook’s Libra is bad news for Bitcoin, because launching it will increase the supply of substitutes. But the psychological effect is to show people that cryptocurrencies are becoming more legitimate. Consequently, investors are returning to the market.
Recall that many economists quite often criticize Bitcoin. So, recently Nouriel Roubini, better known as “Doctor Doom”, in a discussion with the head of BitMEX Arthur Hayes said that cryptocurrency is “the biggest mistake of our era.”