10:35 GMT +323 January 2019
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    Australian entrepreneur Craig Wright on May 2, 2016 identified himself as the creator of Bitcoin, following years of speculation about who invented the pioneering digital currency

    Risks-Prone Bitcoin Will Fail to Fully Replace Fiat Currency – Analyst

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    The price of bitcoin has reached a new record high, trading at more than $10,000 USD per coin on Tuesday. Sven Wagenknecht, editor-in-chief at BTC-ECHO Bitcoin & Blockchain News, told Sputnik about the future of digital money.

    Referring to the ever-increasing growth of Bitcoin, Sven Wagenknecht, chief editor of the website BTC-ECHO Bitcoin & Blockchain News, said that "what we can see now is the so-called mainstream [media] adoption."

    "All the big newspapers and TV channels are reporting about Bitcoin and cryptocurrencies. So this media echo brings a lot of attention to the people and everybody talks about it, including those not only with financial or IT background," he said. 

    Commenting on the risk surrounding the rapid rise of Bitcoin, Wagenknecht said that "every fast increase is connected to risks, especially the risk related to overheating and market bubbles."

    "And in addition to Bitcoin there is a risk to the blockchain ecosystem; the background doesn't grow as fast as the userbase. So that means that Bitcoin transactions, for example, are getting more expensive and slower," he added.

    According to him, an array of big players will soon come to the market and see a lot of new money floating there.

    Wagenknecht remained cautiously optimistic about bitcoin's ability to potentially rival other currencies, such as the dollar, in the future.

    "I don't think bitcoin will fully substitute fiat currency but I think that bitcoin could be an alternative to it. […] A lot of people prefer an independent currency and they think that bitcoin is a great alternative to hatch the wealth or pay a check," he concluded.

    Bitcoin started the year just above 1,000 dollars per coin and has already increased in value by 900 percent.

    The cryptocurrency's market capitalization has reached 151 billion dollars, making it more valuable than corporations like Siemens, MasterCard, British American Tobacco or McDonald's.

    The first international decentralized digital currency, Bitcoin works without a single administrator or central repository, while transactions between people are made directly without an intermediary.

    The cryptocurrency was released as open-source software in 2009 by an unknown person or group under the name of Satoshi Nakamoto.


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