With the current survey results, it says that in about 50 academics reveals majority are not worried about risks posed to mainstream markets brought by Bitcoin and other cryptocurrencies.
According to pool of European economists, Bitcoin poses no threat to financial stability and is unlikely to rattle mainstream markets in the next couple of years.
Based on a survey of almost 50 academics from universities across Europe by the Centre for Macroeconomics and the Centre for Economic Policy Research, the majority are sanguine about the risks posed by the digital currency despite repeated warnings by senior financiers.
Bitcoin’s small size and detachment from the wider financial system was one of the key reasons for comfort among the economists, who said major investment groups did not hold significant amounts of the digital currency.
Furthermore, while bitcoin has surged in value by more than 900% this year, its total value stands at about $300bn, paling in comparison to the total value of global shares at almost $80tn.
In recent months, Senior financiers including the chief executives of JP Morgan and Goldman Sachs have warned against bitcoin, while the chairman of the Royal Bank of Scotland likened it to Dante’s Inferno, saying it was a speculative bubble in need of an apocalyptic health warning for investors from central banks.
It can be seen and hear a lot of news depicting fears over the ability for banks to cover losses on bitcoin trading, with a group of major investment banks writing a letter to US regulators to say that the system of regulation was ill-prepared.
The cryptocurrency has become increasingly part of the wider financial system, after making its debut on the world’s largest futures exchange on Sunday evening, when the Chicago Mercantile Exchange (CME) became the second exchange to offer bitcoin derivatives trading.