Fear of traditional banks and investors to Bitcoin

Currently, one dollar (USD) is equivalent to 0.0001901608BTC, considering the volatility and potential increase in the short life of Bitcoin it is respectable that certain traditional investors and Banks think or want to think that Bitcoin is a bubble. It is also true that what was initially a currency used only by a certain type of profiles in the Deep Web has now become a powerful speculative weapon backed by a brilliant technology, useful and necessary today.

Regulators are trying to catch up with Bitcoin and other cryptocurrencies, they seem to have realized that this goes on for a long time and grows exponentially, so much so that it even challenges the traditional monetary system controlled by banks, governments, institutions and even certain physical persons, and obviously that’s something they do not like at all. The clearest example we put here was that of JP Morgan, at first he said that Bitcoin would not survive (in 2015), for last year to try to face it and finally this year say that it is a complete fraud, the fear is obvious.

The interest of governments such as China, Russia or the United States, the major world powers, is a clear example of how far this new distributed economy is coming in, as well as the spending that is being translated into billions of dollars to study and try to control the distributed market of the cryptocurrencies, something paradoxical right?

It is important to understand that Bitcoin becomes more valuable the more people adopt it, but no new values are generated, so it is unrealistic to compare Bitcoin with stocks or with previous bubbles since the former depended on its ability to generate positive cash flows. It is true that the value of both assets depends on their demand, but such demand depends on totally different variables, you can not compare something that is totally new and that has never existed before, you can not compare the value of a private cryptocurrency with shares of a sector.

Keep in mind that the value of gold is explained by its “value reserve”. Thus gold, in addition to its industrial use, has value because people think it has value, something similar to what happens with Bitcoin, adding that in addition Bitcoin is increasingly used as a method of payment, quality that an ounce gold has not, is very little liquid.

The power and control of money are being wrested from traditional institutions, banks have never been questioned, until today by Bitcoin, with a huge backing of Blockchain technology. Some of these traditional investors agree that it could be the future, while others vehemently denounce it.

As a result, it is normal for Bitcoin to be defamed and attacked, governments, banks and those personalities who control the traditional market are losing power and it is something they do not like, it is a normal thing, although now they are in time to take the path of the cryptocurrencies seems to be that they refuse and that they try to plant him face, until now without success in spite of the attempt of control by the regulators, this continues rising and is something very necessary.