Bubble or not, Bitcoin and cryptocurrencies will make an interesting few years for financial services, financially-minded MPs agree.
Acting Reserve Bank Governor Grant Spencer said over the weekend that Bitcoin looked like a bit of a bubble, having skyrocketed in value over the last year from little over NZD$1000 to upwards of NZD$24,000.
Bitcoin is the largest of the world’s cryptocurrencies.
“I think digital currency and cryptocurrencies are a real and serious proposition for the future,” Mr Spencer told TVNZ on Sunday.
National leader Bill English, who was finance minister for eight years, agrees the price rise looks like a bubble and admits those buying in are taking “some real risk”.
“But I think the more interesting thing about Bitcoin is whether it’s a bubble or not the extent to which, down the line, technology is gong to change all our financial services including the way currency works,” he said.
“That’ll be fascinating over the next five years.”
Finance Minister Grant Robertson hasn’t invested and said he’d been studying cryptocurrencies 101 over his summer holidays.
“I think people should always be cautious with systems like this,” he warned, but added he expects them to become increasingly common in future.
Original Article from MSN Money