Financial and Economic experts as well as top investors have given their opinions and expectation on the current bitcoin frenzy. The reactions are mixed with many expressing skepticism and labeling it a bubble similar to the Tech stock bubble of 1999. Below are the reaction and comments.

Comments against

“Investors are taking a risk buying bitcoin“– Vitor Constancio, Vice President, European Central Bank
In November, Constancio warned against investing in Bitcoin at such high prices. bitcoin prices shot up from $5000 in October, 2017 to $11,000 in November, 2017 and then rose astronomically to a record high of $19,000 before price tumbled to a current low of $12,000. This could be the result of people withdrawing their earnings in the wake of the holidays.

“Bitcoin is a Fraud.” Jamie Dimon, JPMorgan Chase CEO
The Cryptocurrency “is a fraud, It’s not a real thing and eventually it will be closed. ” Dimon said at the delivering Alpha conference presented by CNBC and institutional investors.

“Bitcoin is like Monopoly money” – Jim Cramer, Host of CNBC Mad Money
“Bitcoin is a pure gamble, ” Cramer said. It is kind of like monopoly money. Obviously there’s people who use it.
If you ever say anything bad about it, there’s like this bitcoin mafia that comes after you. But it is an oddity that has nothing to do with us” as investors. “It’s just pure gambling at this point,” Cramer continued. “I mean, if you want to gamble, go to Vegas. Vegas is fabulous.”

“It’s a Pyramid Scheme.” – Howard Marks, Billionaire Investor
Digital currencies are nothing but an unfounded fad perhaps even a pyramid scheme, Marks wrote in an investor letter.
“It’s a Mirage. Stay away from it.” – Warren Buffet, Billionaire Investor.
The billionaire investor whose investing wisdom is widely followed said the idea that cryptocurrencies have some huge intrinsic value is a mirage in his view. Buffet believes the frenzy about bitcoin is driven by FOMO, fear of missing out.

Comments In Favor

“Virtual currencies may give existing currencies and monetary policy a run for their money” – Christine Largarde, IMF chief

“Bitcoin and other cryptocurrencies are viable financial Instruments.” – Adam White, VP Coinbase Inc
“What we found was that bitcoin was both oil and less volatile than Twitter stock in the year 2016”. He said, “We’re seeing volatility now. That’s not a bad thing. More liquid markets with institutional capital entering the space are ultimately going to decrease that volatility. Thus, make digital currencies like bitcoin are really viable financial instrument for the world.” Adam White stated In a paper he wrote with Chris Burniske, a partner at cryptocurrency focused venture capital firm.

“Bitcoin will hit $300,000 to $400,000 in the coming months. ” – Ronnie Moas, Founder of Standpoint Research
In July 2017, Moas predicted the rise of bitcoin to $5,000. At the time of his prediction, bitcoin was trading at about $2,600.
“The end-game on bitcoin is that it will hit $300,000 to $400,000 in my opinion, and it will be the most valuable currency in the world,” Moas told CNBC’s “The rundown.”
“I don’t know how much gold there is in the ground, but I know how much bitcoin there is, and in two years there will be 300 million people in the world trying to get their hands on a few million bitcoin.” Moas said.
Our View
Based on the history of bitcoin and other cryptocurrencies, we believe cryptocurrencies have come to stay.
Cryptocurrencies have two important features that can’t be ignored. They can serve as money and are becoming more accepted as means of payment. They also serve as commodities that hold value such as gold. These two features give bitcoin and other cryptocurrencies a huge potential to become very valuable commodities in the near future.
However, due to it’s highly volatile nature, bitcoin and other cryptocurrencies are better held as long term assets.

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