CHATTANOOGA, Tennessee (WDEF)- "Bitcoin itself, since the beginning of the year, has risen by 100%, has fallen by 50% and has risen another 100%," said Chris Hopkins.
Cryptocurrency, in particular Bitcoin, has been steadily making its way into the mainstream for the past few years, but was taken to a new level when Bitcoin made its debut on the New York Stock Exchange.
"This ETF launch is the second most successful in NYSE history in terms of trading volume, over $ 1 billion in day one trading."
Hopkins says that trading the Bitcoin ETF is technically not trading Bitcoin, but trading Bitcoin futures.
โWhen you think about it, there are futures contracts for oil, wheat, soybeans and everything else. They are really just bets on the future price of raw materials. "
He says that bitcoin and similar cryptocurrencies are known to be extremely volatile. In the future, expect to see government-backed cryptocurrencies, such as a cryptocurrency with the stability of the US dollar attached.
โThe Fed is working hard on that. Chen is already doing it. Approximately 130 countries are working on a digital conversion of their own currency that will provide all the benefits in terms of instant and almost free transactions. "
He feels that in the long run this would extremely reduce or eliminate cryptocurrencies like Bitcoin, as the volatility of federal cryptocurrencies would be greatly reduced.
"Let's call it Bitdollar and it has a stable value of one dollar per coin, it's hard to imagine, in my mind, three or four years from now how Bitcoin has any value."
He says that the Blockchain technology used for Bitcoin, not Bitcoin itself, will likely be the one used for years to come.
