The vice chairman of investment and advisory company Blackstone Group, Byron Wien, has predicted that bitcoin will collapse in 2014. The prediction came from Wien’s “surprise” prediction list — the list Wien says “do not make the [top ten] either because I do not think they are as relevant as those on the basic list or I am not comfortable with the idea that they are ‘probable.'”
As it is written:
In 2½ years the price of a Bitcoin has increased from $25 to $975. The supply of Bitcoins is fixed at 21 million with 11.5 million in circulation. Bitcoins lack gold’s position as a store of value over time. During the year Bitcoin’s acceptance collapses as investors realize that it cannot be used as collateral in financial transactions and its principal utility is for illegal business dealings where anonymity is important.
Business Insider points out that Wien’s 2013 predictions “did not pan out so well”, so it probably won’t come as a surprise that at least this prediction won’t either — particularly in the light that major companies are now recognizing bitcoin.
One can assume that Wien doesn’t quite understand bitcoin, nor does he see the potential in it. Who knows? Maybe he even sees it as a threat. But one could argue that ignorance does not give you a pass to make outrageous and unrealistic predictions.