Market forecaster Jim Bianco discussed the driving factors behind the price of cryptocurrencies and said there was a “wider picture” which showed “promise” for long term positives in coins like Bitcoin and Etherium. He explained behind cryptocurrencies was a large movement seeking to decentralise finance away from banks and other institutions which were causing systems to be remade. But the market expert added cryptocurrencies were also being influenced by an “out of control casino” where people wildly bet on crypto prices falling or rising.
His comments come as Bitcoin saw prices plummet by 50 percent in recent weeks after a multitude of events happened which affected its price.
The most noticeable was Tesla CEO Elon Musk revealing he may have dumped his Bitcoins worth millions and stopped Tesla from accepting it as payment for cars.
The entrepreneur has been vocal about the large amounts of energy and fossil fuels needed to mine Bitcoin and has instead backed alternative coins.
China has also cracked down on cryptocurrencies as they fear they could be used for criminal activities.
Speaking to CNBC about the events, Mr Bianco was asked what he believed the biggest factors behind cryptocurrencies were.
He said: “Well, one of them is the whole decentralised finance movement which is simply rebuilding the financial system in a new way.
“I think that’s got a lot of promise and that’s really what’s significant.
“The problem is the other driver is kind of an out-of-control casino with people betting on these coins going up and down and it kind of masks the bigger picture of what’s going on there.
Cryptocurrencies are also registered in a “blockchain” meaning every transition is recorded in a ledger – which some say could be key to plan out future economic policies.
Property developer Storm Gonsalves spoke with Express.co.uk and revealed he is building a luxury property complex in the Caribbean and will be the first community in the world to widely accept cryptocurrency as payment.
He explained goods, services and the properties themselves on the island could all be bought using Bitcoin which would see a price locked in for ten minutes to limit any fluctuations.
He told Express.co.uk that his success could be “the future” of the housing market as properties have already been bought using cryptocurrencies.
He added the houses on his development would also see “stratospheric” returns should the development be successful.
Express.co.uk does not give financial advice. The journalists who worked on this article do not own Bitcoin.