James Gorman,chairman of Morgan Stanley,called Bitcoin "speculative and volatile" and stated that he did not understand the value of Bitcoin as a form of stored value.The investment banker said he did not consider Bitcoin a tool for core investment because of volatility.
Now I will not be an unconditional protector of cryptocurrencies.Indeed,it is difficult to name a person who understands how Bitcoin price is formed. It’s too unique an asset with consumer properties that have never been seen before.It’s funny to hear about "supply and demand balance".This balance is now formed exclusively on the stock exchange and is determined by the decisions of regulators, the actions of big players and rumors.
If you take "classic" assets,Bitcoin is not like them at all.Is it money?No.Commodity?No.In some ways it resembles tulip bulbs,from which in the 17th century in Holland the first known pyramid scheme was built.Immediately notice:Bitcoin - not a pyramid scheme, but the similarity means that we have an asset that does not have a natural high value,and just a consensus of buyers and sellers makes it very expensive.
However,Bitcoin and other cryptocurrencies have room for development.This is primarily recognition of it as a unit of account.Official recognition will fundamentally change the situation,and a suspicious asset may suddenly become quite respectable.
The Bitcoin-ETF,for example,could be such an admission.However, it should be noted that Bitcoin will not become the currency for everyday payments.ETF is an investment tool and has every chance to accumulate a significant part of the Bitcoin that circulates on the market.Most likely, Bitcoin will perform the function of "digital gold",which is a highly liquid asset,but not suitable for regular settlements.
Bitcoin will confidently take its place in the market, however,it is unlikely to change its speculative nature and not completely rid of volatility.But it will not be super-high volatility,it will become a well-respected investment asset.