Former U.S. Treasury Secretary and economist Larry Summers says Bitcoin is here to stay despite concerns from some that it could be a bubble. The former secretary claims that Bitcoin’s price volatility is actually a sign of its resilience.
In his recent comments on Bitcoin, Summers, who became Senior Advisor to the Digital Currency Group in 2016, reiterated his stance on crypto and its underlying technology. Prior to the new remarks, Summers had previously predicted that “the financial industry will adopt the technology that underlies Bitcoin”.
However, in his recent comments, Summers touches on the steady supply of crypto and how that is a factor in its current surge. The former secretary says:
I think people will move towards it, and when people move towards it, given the finiteness of supply, it will be a factor that helps raise prices.
Although Summers refuses to predict the future price of crypto, he hints that this is likely to go up and “institutions like it”.
In addition to the firm offering of Bitcoin, the former secretary is also cited as an indication that factors such as bond interest rates could affect the value of the crypto-asset. According to Summers, “people put less money into bonds and more money into other assets” when the amount of money they earn on bonds goes down.
Do you agree that Bitcoin’s fixed supply is a key factor attracting institutional investors? Let us know what you think in the comments section below.
Photo credit: Shutterstock, Pixabay, Wiki Commons, Bloomberg
