George Soros believes that dictatorships will not let Bitcoin collapse
Cryptocurrencies are a bubble. They cannot serve as a currency as such because of their volatility. This opinion was expressed by the legendary financier George Soros during a speech at the economic forum in Davos.
“Cryptocurrencies are a typical bubble that is always based on some misunderstanding,” Soros said..
He drew attention to the fact that the bitcoin rate can fluctuate by 25% per day, which means that it cannot be used, for example, to pay salaries..
“Because then wages will also fall by 25% per day,” he said. “So this is speculation based on misunderstanding.”.
However, unlike his colleagues, Soros does not predict bitcoin’s imminent collapse and oblivion..
“Usually when a parabolic curve occurs, it eventually goes into a very sharp drop,” Soros said. “But in this case, as long as dictatorial regimes prevail, the ending will be different, since the rulers of these countries will use Bitcoin to create a financial reserve abroad.”.
Soros, who earned $ 1 billion in short positions against the British pound in 1992, believes that cryptocurrencies will not have a sharp collapse, but a “rather flat top”.
According to Soros, blockchain technology has a number of advantages. He said that the blockchain is being used in the Open Society foundations he founded to help migrants communicate with their families and keep money..
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