Bitcoins "bubble-like" prices cause skepticism among financial professionals - report

Thursday 24 July 2014 16:35 CET | News

More than half (55%) of professionals active in the traditional finance industry claim that the virtual currency trades at unsustainable, bubble-like prices, a recent Bloomberg report indicates.

On top of this, 14% have mentioned that the currency is on the verge of a bubble, while 6% have said a bubble is not forming. According to Bloomberg representatives, cited by, the results show skepticism even as technology entrepreneurs, venture capitalists and hedge funds put money and effort into building Bitcoin into a global payment system.

A January 2014 poll by the organisation indicated further doubts from these players, with almost half of respondents bearish on the topic, claiming they would sell rather than buy Bitcoin. It is worth noting that Bitcoin’s price was significantly higher in that interval.

In December 2013, Bloomberg released another poll which examined the perception of Bitcoin among the average US consumer. According to the results, 42% of US respondents could correctly identify Bitcoin as a digital currency. However, many people who knew Bitcoin had reservations regarding its legitimacy.

Another poll, involving 847 tech professionals, which was conducted by events company Tech in Motion revealed that over half of participants (51.1%) responded “yes, absolutely” when asked if they would like to be paid in the digital currency. Only 1.18% of those who took part said they had no idea what Bitcoin was.

The Bloomberg report is based on a poll of 562 investors, analysts and traders who are Bloomberg subscribers. Bloomberg’s poll, conducted on 15-16 July 2014 by Selzer & Co., a Des Moines, Iowa-based firm, has a margin of error of plus or minus 4.1 percentage points.

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Keywords: Bitcoin, virtual currency, traditional finance, technology entrepreneurs
Categories: Payments & Commerce
Countries: World
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