Practical Bitcoin Use Cases Will Make Crypto Grow, Not Investor Speculation, CME CEO Affirms
When Satoshi Nakamoto created Bitcoin, he was not thinking about a “get rich quick” scheme. He was really dissatisfied with the traditional markets and centralized authorities and intended to cause a real revolution.
However, what we have seen recently is that a lot of people simply use crypto assets for speculation. They are often sold like panaceas to everything inflated by hype or as something that will give you an unreal return on investment very quickly.
Sure, speculation is normal and almost expected in any kind of free market, but it is not what will make the price of Bitcoin (BTC) really go up. At least, that is what the CEO of the Chicago Mercantile Exchange (CME) believes.
Terry Duffy has recently been interviewed by the Business Insider and he affirmed that the crypto community simply has a fetish with the price. According to him, it does not make sense to focus on prices so much because what will actually drive Bitcoin in the right direction are use cases and not only its value, which is often driven up by speculation, as it happened in 2017.
What happens when you see prices increasing fast because of the hype is that you lose perspective on the important aspects which would help the price to be maintained at a good range. Last year, prices crashed because Bitcoin was still not ready for wide adoption. The hype died out and the prices went down together.
According to the CEO of CME, once you create important use cases, prices will be taken care of. You have to determine how to use the asset for something and people will naturally look for it. According to him, this makes stablecoins the most interesting assets as they can be used as money because they are not very volatile.
Do Not Expect Regulators To Love Bitcoin
Duffy also talked about an important aspect of cryptos, how they have a cap. For instance, Bitcoin will only ever have 21 million tokens (and some are already lost forever). The regulators, he affirms, are very wary of this, as they are drawn to the idea of simply printing more money all the time.
He does see as possible a world in which governments simply drop fiat and accept Bitcoin because they will lose control and they do not want to be:
“responsible and run everything on a even-for-even basis”.
The major challenge, then, will be to actually convince the regulators that they should trust this industry. While the regulators are not fans of Bitcoin (just think about the SEC and the Bitcoin exchange-traded fund if you doubt it), they have to be convinced. If they are not, major companies will not join this industry.
As soon as they are, though, the crypto space will finally be open for the future.