The co-founder of Yahoo is a big believer in bitcoin and thinks that in time it will become a global force for good when it’s treated like a currency.
Speaking on the sidelines of the Fortune Global Forum in Guangzhou, China, Jerry Yang, who leads venture capital fund AME Cloud Ventures, said to CNBC that:
Personally, I am a believer in where digital currency can play a role in our society, not only in the front end of doing transactions, but also in the back end of creating a more efficient system and a much more verifiable system. For now, it seems like it’s more driven by the hype of investing and getting a return rather than using it as a transaction currency.
Thursday saw bitcoin’s price reach a significant milestone of over $16,000 for the first time, pushing its market cap to an impressive $270 billion, according to BlockExplorer’s Market Cap.
This rise in value comes at a time when several promising factors are due to take place later this month, namely the launch of Cboe Global Markets and the CME Group’s bitcoin futures contracts. Last week, the two received regulatory approval from the U.S. Commodities Futures Trading Commission (CFTC), enabling investors to trade in the digital asset via a regulated market.
Yet, while Yang is optimistic of bitcoin’s future, there are plenty who remain cautious of it.
Dennis Gartman, often referred to as a ‘commodities king’ said this week that while the launch of the futures trading will bring ‘some sense of legitimacy’ to the digital currency he’s still not buying into it.
Speaking on CNBC’s ‘Fast Money,’ he claimed:
It’s the volatility that frightens me.
Interestingly, billionaire hedge fund manager and bitcoin bull Mike Novogratz recently expressed his worries about bitcoin’s rising value. As reported yesterday, Novogratz said that nervous regulators could attempt to cool the market with the introduction of regulations on digital currencies.
One of the big risks out there right now is that prices are moving so fast that regulators are going to get nervous,” he said. “I could legitimately see bitcoin go $13,000, $14,000, $20,000, $25,000 and see somebody balk.
For now, though, regulators appear to be more intrigued with the cryptocurrency market, with several countries, such as Japan, accepting it as a legal form of payment. Last month, the former Fortress manager projected that bitcoin could ‘easily‘ reach $40,000 by the end of 2018. He also said that ethereum could experience a threefold gain in the same time.