Former US Treasury Secretary and economist Larry Summers says bitcoin is here to stay despite the concerns from some that it could be a bubble. The former secretary claims that bitcoin’s price fluctuations are in fact a sign of his resilience.
In his latest comments about bitcoin, Summers, who in 2016 became senior adviser to Digital Currency Group, reiterates his stance about the crypto and its underlying technology. Prior to the new comments, Summers previously predicted that the “financial industry will adopt the technology underlying bitcoin.”
Still, in his latest comments, Summers touches on the crypto’s stable supply and how this is a factor behind its current rise. The former Secretary says:
I think people are going to move towards it, and as people move towards it, given how limited its supply is, that will be a factor that works to drive up prices.
Although Summers refuses to predict the future price of the crypto, it suggests that this is likely to rise, and “similar organizations.”
Meanwhile, in addition to the fixed supply of bitcoin, the former Secretary is also quoted as suggesting that factors such as interest earned on bonds could have an impact on the value of the crypto asset. According to Summers, if the amount earned on bonds goes down, “people put less of their money in bonds and more of their money in other assets.”
Do you agree that bitcoin’s fixed supply is one key factor that attracts institutional investors? Tell us what you think in the comments section below.
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