Former US Treasury boss admits it: ‚Bitcoin is here to stay‘

Bitcoin isn’t so bad after all

While some top financial officials, like Christine Lagarde (the ECB president), continue to denigrate Bitcoin (BTC), others are beginning to admit that it’s not just a passing fad. This is the case today with Larry Summers, former US Treasury Secretary.
Bitcoin’s secret: a strictly limited supply

Lawrence Henry Summers was the U.S. Treasury Secretary under Bill Clinton’s administration from 1999 to 2001. In 2014, he also came close to taking over as head of the U.S. Federal Reserve (Fed), before Janet Yellen was preferred to him.

In an interview with Bloomberg’s Wall Street Week, Larry Summers was asked to give his opinion on the world of cryptocurrencies, especially on the bubble (or not) situation of the current Bitcoin prices:

„I think an institution like Bitcoin is here to stay. I don’t think it’s going to collapse (…)“

Fmr Treasury Sec Larry Summers:

„I think some institution, like [#bitcoin], is here to stay. I don’t think the whole thing is going to collapse…people are going to move toward it…the finiteness of its supply [is] going to raise prices.“
– Neil Jacobs (@NeilJacobs) January 17, 2021

Bitcoin, a currency with a golden future?

The former Treasury Secretary also mentioned that he thinks Bitcoin is „much more resilient“ than other currencies or assets. This quality could lead to more and more people becoming interested in it, which, combined with its „limited supply,“ could well „drive up the price“ of Bitcoin.

That’s a surprisingly optimistic statement for the king of cryptos, especially from a former financial institution executive.

Summers isn’t the only one to change his mind: at the same time, former Canadian Prime Minister Stephen Harper was quietly comparing Bitcoin to the ancient gold haven. According to him, the two assets would be the only two serious challengers to the US dollar as a global reserve currency.

Even if the leaders currently in charge are much more cautious with cryptos (or even hostile, to put on a brave face), we can see a change in mentality among those who have a freer voice (because they are no longer in office). Little by little, Bitcoin is making its way to become a key player in the economy of tomorrow’s world.