Soros supports blockchain, and explains bitcoin value supported by dictators

Recently billionaire George Soros spoke at the World Economic Forum in Davos, and when asked about bitcoin and cryptocurrency, had expressed support and interest in the blockchain technology, but had some interesting theories about bitcoins valuation:

“Cryptocurrency is a misnomer, and it’s a typical bubble, which is always based on some kind of misunderstanding.  The bitcoin is not a currency, because a currency is supposed to be a stable store of value, and a currency that can fluctuate 25% in a day, cannot be used to pay wages, so it’s a speculation, based on a misunderstanding”

Although it seems clear that Soros is not a proponet of bitcoin he did state that his organizations use blockchain technology for various cross-border activities,

“There is also a very innovative blockchain technology which can be used for positive or negative purposes. The blockchain technology can be put to positive use, and we use it actually in helping migrants to communicate with their families and keep their money safe”

Interestingly, although Soros may have stated that bitcoin is a bubble, as a comparison to the Dutch “tulip mania” of the 1600’s, but also adds that this bubble may not pop:

“Recently there was a conference, instead of discussing conditions in Russia, they mainly discussed Bitcoin.. because that’s what the rulers were interested in.  This will have a big effect on the valuation of bitcoin………….”

The questions remains, where is the value of bitcoin going from here?  Will there emerge a stable cryptocurrency that is not volatile and has very minimal daily fluctuations, one that can be used to maybe buy a coffee, or pay wages?  Lets us know your thoughts in the comments below

Credit: Bloomberg video coverage at Davos;  Mitch Elbiali,  Journalist, CryptoMarketWire