The former U.S. Treasury Secretary and economist Larry Summers says bitcoin is here to stay despite the concerns by some that it may be a bubble. The former Secretary asserts that bitcoin’s price fluctuations are, in fact, a sign of its resilience. In his latest comments about bitcoin, the former U.S. Treasury Secretary, who in 2016 became a senior adviser to Digital Currency Group, reiterates his position about the crypto and its underlying technology. Before the new remarks, he previously predicted that the “financial industry would adopt the technology underpinning bitcoin.”
“People are going to move towards bitcoin.”
Summers touches on the crypto’s fixed supply and how this is a factor behind its current rise in his latest comments. The former Secretary said, I think people are going to move towards it, and as people move towards it, given the finiteness of its supply, that’s going to be a factor working to raise prices. Although Summers refused to predict the crypto’s future price, he did hint that this will likely go up, and “institutions like it.”
Bitcoin’s price drops to nearly $31,000.
The price of bitcoin is trading at just above the $31,000 mark at the time of writing. The leading cryptocurrency witnessed a massive winning rally this month as the price touched as high as $41,000 at one point. In addition to bitcoin’s fixed supply, the former Secretary is also quoted as suggesting that factors like interest earned on bonds might have an effect on the cryptocurrency’s value. According to Summers, if the amount earned on bonds goes down, “people put less of their money into bonds and more of their money into other assets.”