The amazing price rally of Bitcoin this year continues to attract skeptics.
Katsunori Sago, chief investment officer of Japan Post Bank, is the latest to join the fray. According to him, the largest cryptocurrency in the world by its market capitalization is in the territory of bubbles.
Speaking to Reuters today, Sago argued that the true fair value for bitcoin is around $ 100, adding that the current high value of cryptocurrency is worse than the dot-com bubble of late of the 1990s.
Sago said that if the bitcoin fell to $ 100, the bank might consider buying it, but because of the high volatility, there is no short selling plan of the cryptocurrency. According to the source of information, the IOC also predicted that the bitcoin rally could rise to around $ 10,000 when CME Group will launch its bitcoin futures product – an expected change by the end of this year. 2017.
However, he also expressed a positive sentiment about blockchain technology and predicted that, in the coming years, bitcoin could be widely used in colonization.
"The best thing to do here is to stay out [until then]," he said.
Sago's take on bitcoin reflects views of other big names in finance. Earlier in the day, Morgan Stanley CEO James Gorman said Bitcoin's dazzling price gains are "by definition speculative".
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