CHATTANOOGA, Tennessee (WDEF)-“Bitcoin itself just from the first of the year has risen by 100%, dropped by 50%, and risen by another 100%,” said Chris Hopkins.
Cryptocurrency particularly Bitcoin has steadily been making its way into the mainstream over the past several years, but it was taken to a new level as Bitcoin made its New York Stock Exchange debut.
“This launch of the ETF what is the second most successful ever in the history of the NYSE in terms of just trading volume, over $1 billion in trades on the very first day.”
Hopkins says trading of the Bitcoin ETF is not technically trading Bitcoin it’s trading futures on Bitcoin.
“When you think about it, there a future contracts for oil and wheat and soybeans and everything else. They’re really just bets on the future price of commodities.”
He says bitcoin and similar cryptocurrencies are known to be extremely volatile. In the future, he expects to see cryptocurrencies with Governmental backing, such as a cryptocurrency with the US dollar stability attached to it.
“The Fed is hard at work at that. Chen is already doing it. About 130 countries are working on a digital conversion of their own currency which will deliver all the benefits in terms of instantaneous and nearly costless transactions.”
He feels over the long run this would extremely reduce or eliminate cryptocurrency like Bitcoin as the feds crypto’s volatility would be greatly reduced.
“Let’s call it a Bitdollar and has a stable value of one dollar per coin it’s hard to imagine, in my mind, three or four years from now how bitcoin has any value.”
He says the Blockchain technology used for Bitcoin, not Bitcoin itself, will likely be what is used for years to come.