The recent, dramatic rise in bitcoin prices is all part of a long-anticipated climb out of the digital currency’s 16-month doldrums. Many observers are calling for bitcoin prices to double or even triple this year, but in the meantime, some institutions and shops are getting into the bitcoin scene.
NY-based Verily, a company specializing in biomedical and AI technologies, is experimenting with using bitcoin in its mission to enable the future of health and mobility.
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And HBO’s Silicon Valley is no stranger to its own financial-related series. The show ran for four seasons, and got much of its humor from the inventor of Bitcoin and Fortnite creator.
This season the HBO show Silicon Valley took a closer look at the creative minds behind the company of the same name, which builds technology for cryptocurrency mining. For example, one episode featured an elaborate large scale confetti shoot by the company.
“This episode was really about the creation of technology and is reflective of the way we are spending our time and energy. We want to push the boundaries, do things that have never been done before, and push the boundaries on creativity,” said Amir Ali, one of the founders of Hooli, another of the HBO show’s fictional companies.
Another HBO show, Divorce, included character Eleanor Gilford, who could be viewed as a harbinger of bitcoin and blockchain’s future as a business.
“In a nutshell, bitcoin is just going to be the mode of cash and crypto is all about communication,” Gilford said. The character also believes that a number of Bitcoin “unicorns” are on the horizon and that bitcoin is now completely defacto currency in some parts of the world.
However, even though there are not many established financial entities trading in bitcoin and its blockchain technology, many believe the future will be bright for bitcoin if you have a science-fiction bent.
“The ability to create cryptocurrency futures means we can have a transparent contract that allows the perfect way to express desire. Moreover, just like real-world opportunities, cryptocurrencies are speculative and widely considered an ‘outlier’ investment, especially right now. Bitcoin at this juncture is a risky speculative vehicle,” said Michael Sprinkel, CIO and Global Head of Equity Research at Calvert Investment Management.
Sprinkel also believes that the recent rise in cryptocurrency prices is a good sign that people are increasing their expectations of how cryptocurrencies might play out.
“After a while, if our expectations don’t hold up, we are often willing to reassess. And this quarter, when we looked at bitcoin from this perspective, we thought the fundamentals were holding up pretty well,” Sprinkel said.
However, he points out that a large part of bitcoin’s recent rise is the result of people’s infatuation with cryptocurrencies and causing prices to skyrocket.
“If everything about cryptocurrencies looks attractive right now, it’s the psychology of value that leads people to invest. And I think the psychological aspect of the price of bitcoin is far from healthy,” Sprinkel said.
“As I’ve written before, I think the drivers of bitcoin are suspicious, irresponsible and irresponsible, and that is by far the most exciting and important development for the markets right now,” he said.
The takeaway? If you want to be financially rich and brilliant in technology but not in cryptocurrency, then you might want to be a little more bearish on bitcoin and its fellow cryptocurrencies.