He said that now many people are investing in it for more money. In such cases, if these people suddenly withdraw from the market, many will be in danger.
"That's our fear," the economist warned. "Since there is no authority, there is no room for more supply of money. So there is no mechanism to control when it collapses or goes up."
We have been hearing things like this for a long time but Bitcoin remains and is even getting stronger and has gathered increased trust from people. As an economist myself, I wouldn't say that Bitcoin is not without its own risks as it's being sustained by people's money, yet, life itself is risky, there's nothing that we commit our money to earn us more money that is not risky. Even to keep money in a fiat bank is risky, and the more your risk, the more money you might gain from it.
Specifically, the main cause of fear among economists is that Bitcoin is not backed by anything and there is no assurance that could guarantee the deposit of people. I'm afraid, I share their view in this regard because if anything bad starts happening, there will be panic withdrawal of money and it will get to the extent that the money will not be able to be withdrawn anymore and it might be gone forever if there's nothing backing it up, not even a legal agreement.
Still, stocks and shares that we buy to keep are not so much different from this. As Bitcoin is being sustained by people's money, such as stocks/shares are being sustained by it too. And the risk in Bitcoin is being reduced daily as the market gets more liquidity and I don't see any foreseeable collapse of the coin in decades.
No traditional finance is a paradigm shift, but isn't that innovation? Emerging financial ecosystems challenge the status quo. Bitcoin represents the digital transformation from tangible to intangible value. It shows social digitalization. Trust in technology and traditional institutions gives Bitcoin value. Modern alchemy converts digital trust into wealth
Bitcoin's volatility, a risk, might be beneficial. True free markets have no central controls. Bitcoin's fluctuation-resistant growth is astounding. Mature markets lessen volatility as liquidity rises. Bitcoin is a currency and symbol of decentralization in this financial renaissance. Our risk concept must grow with currencies. In a world of constant change, Bitcoin signals a new economic era=