Economists say that Bitcoin is the monetary equivalent of Uber because it surpasses the central bank regulation. Making it an attractive option for fragile countries. This is after Bitcoin’s amount soared to a record high of more than $8,000.
However, no matter how high the exchange is, it is still the lack of oversight that makes users of cryptocurrency susceptible to dangers and risks, according to Inquirer.
Ludovic Subran, the chief economist at credit insurer Euler Hermes likened the Bitcoin cryptocurrency to Uber, the ride-sharing app that been soaring the business scene since its launch.
“Bitcoin? It’s about ‘Uber-ising’ currency, about not having a central bank that decides the price,”
According to Subran, this is exactly what Uber was doing since it was launched, it bypasses the regulatory authorities regarding the pricing of their services.
Yves Choueifaty, the founder of Tobam, a Paris-based asset management firm that launched the first European fund investing in Bitcoin this week also agreed with Subran.
“Yes, it’s exactly that: it bypasses a central regulatory authority. That’s the genius of this invention,”
Bitcoin never had a legal exchange rate and also no central bank that is backing it. It is not regulated and is just traded on specialists platforms, thus the dramatic rise of its rate.
When it was launched in 2009, it started as a bit of encrypted software that is written by someone with a Japanese sounding name, Satoshi Nakamoto. Bitcoin has since then, been regulated by its community of users.
At the rate that it is going, investors are already seeing its potential. At the start of the year, it landed on $1,000 but has been recorded at $8,000 this week.
“We have no need for central banks,” said Yves Choueifaty, suggesting that institutional investors may be behind the recent sharp gains, even if insisted that there was “no bitcoin bubble.”
The growing interest of Bitcoin has not only caught the attention of investors but also the big time companies like the CME Group of Chicago which is considered as one of the world’s biggest exchanges. CME decided to launch a Bitcoin futures marketplace.