Bitcoin is doing extremely well as of late. It has recently crossed the $51,000 line, and it appears to be staying there. Several institutions and major tech industry players have been investing in the asset and seem to be viewing it through a rather positive lens, but this isn’t changing the minds of most financial executives when it comes to BTC and crypto.
Bitcoin Is Doing Well, but It’s Not Loved By Everyone
In a recent survey, only 16 percent of the world’s primary financial heads say they would ever consider investing in crypto. The rest, however, seem to have harsh feelings towards it, once again suggesting that no matter how well bitcoin does, it will always have major doubters and haters. Sadly, these financial executives may be missing out.
The survey suggests that approximately 84 percent of those involved in major financial positions would never consider bitcoin a valid investment, citing too much risk and concerns with its volatility. While bitcoin has been doing well, its vulnerability to price swings is a constant in the crypto space. As a matter of fact, it was this volatility that helped the currency rise to its latest level.
Thus, in some instances, volatility can be quite good, but for anyone who invested in a year like 2018, they know that bitcoin can lose all or nearly all its value in a rather short period, and therefore it’s necessary to acknowledge that a certain level of danger exists when it comes to investing in digital currencies.
The survey was conducted by a company known as Gartner Finance, and as many 77 individuals working in the financial arena took part. Aside from volatility, many of these figures were worried about the idea that bitcoin has yet to be labeled a mainstream currency.
One cannot exactly walk into a store and buy a cup of coffee or a roll of toilet paper with bitcoin. While there are programs out there that will convert crypto to fiat through a credit or debit card, you still wind up paying with standard fiat currency for your items… not with the crypto itself.
This is a major concern amongst executives, who feel that the adoption rate for bitcoin is too slow to take the asset seriously. Alexander Bant – chief of research at Gartner – explained in a recent interview:
There are a lot of unresolved issues when it comes to the use of bitcoin as a corporate asset. It’s unlikely that adoption will increase rapidly until we get more clarity on these challenges.
Concerns About Volatility, Theft and Status
There were also worries regarding cybertheft and the security surrounding BTC. Bant further mentions:
It’s important to remember this is a nascent phenomenon in the long timeline of corporate assets. Finance leaders who are tasked with ensuring financial stability are not prone to making speculative leaps into unknown territory.