[ad_1]
Harvard Economics Professor Ken Rogoff says the US has “a long way to go,” but says the recovery has been better than he bargained for.
Bitcoin hit a record valuation of $ 16,118 on Thursday, its highest level since 2018.
The cryptocurrency is up 123% year-on-year and 50% this quarter, according to data from California-based digital currency exchange Coinbase.
“At a high level, there is no doubt that the pandemic has impacted the underlying technology of cryptocurrencies themselves, but that’s not the only factor,” Joseph Guagliardo, a technology and blockchain attorney at Troutman Pepper told FOX Business. .
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| BTC | n / A | n / A | n / A | n / A |
The pandemic created “concern about US inflation and global inflation,” making Bitcoin something of a “digital gold and safe haven,” he said.
The other factor, according to Guagliardo, is that “the underlying technology” and the infrastructure used to create cryptocurrencies like bitcoin “is starting to reach a level of maturity,” prompting investors to become more involved.
BITCOIN HITS $ 11K: A CRYPTO-CURRENCY TIMELINE RISING, FALLING AND RETURNING
“It’s a perfect storm situation. … I can tell you that there are forces underway beyond the pandemic that is happening with cryptocurrency and technology,” he said.
Guagliardo cited Ethereum, a type of blockchain technology that “has been widely adopted” and has matured significantly since the 2017-2018 time frame, when people first started showing more interest in blockchain and cryptocurrency.
VENMO PRESENTS ITS FIRST CREDIT CARD
Additionally, companies like Microsoft, AT&T, Overstock.com, and Twitch have adopted bitcoin as a form of payment. PayPal announced in October that it has launched a new service for users to buy, hold and sell cryptocurrency on the platform.
“The shift to digital forms of currency is inevitable, bringing with it clear benefits in terms of financial inclusion and access; the efficiency, speed and resilience of the payment system; and the ability for governments to quickly disburse funds to citizens”, Dan Schulman , president and CEO of PayPal, said in a statement on Oct. 21.
There is, however, still room for caution, as Harvard economics professor Ken Rogoff told FOX Business “Mornings with Mary” on Thursday.
“I’m a bit skeptical about bitcoins,” Rogoff said. “I think it will play a role on the periphery of our financial ecosystem, but I was surprised how well it is done.”
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Guagliardo said potential investors should understand cryptocurrency and how it works before investing in the same way that investors should understand companies.
“My first piece of advice to anyone looking to crypto as an investment is to first understand what it is – what the technology is,” he said. “If they’re going to buy bitcoin or Etheruem, first understand the technology … eventually, they’re making an investment in a technology and they should understand it first as if they understand a company and what they have to do.”
CLICK HERE TO READ MORE ABOUT FOX BUSINESS
