Demand May Raise Bitcoin's Price, Says Ex-US Treasury Secretary

Bitcoin has already proved its resilience and gained some traction among institutions and the general public alike, making its price primed for further growth, former US Treasury secretary Lawrence Summers told Bloomberg during the “Wall Street Week” show on Friday.

Speaking about whether Bitcoin is a bubble, Summers noted that while he doesn’t want to predict the crypto’s price movements in the short term, “some institutions” seem to like it, and thus it is “here to stay.”

“I think that having run up and then run way down, and then move back, it looks much more resilient, and therefore I think people are going to move towards it. And as people move towards it, given the finiteness of its supply, that’s going to be a factor working to raise prices,” he asserted.

Summers is a well-known economist who previously served as vice president of development economics and chief economist of the World Bank, senior US Treasury Department official, and director of the National Economic Council.

As Decrypt reported, Bitcoin keeps getting endorsements from experts in the traditional finance sector. Just recently, Guggenheim Partners—which has $295 billion dollars under its management—CIO Scott Minerd reiterated his prediction that Bitcoin will hit $400,000.

“I think one thing that we’re seeing is the sudden interest in retail,” he said, adding, “We’re moving into a speculative frenzy.”

Tesla CEO Elon Musk shared his view on Bitcoin as well recently, although he remained skeptical that it would become the main currency system.

“The thing we call money is just an information system for labor allocation. What actually matters is making goods & providing services. We should look at currencies from an information theory standpoint. Whichever has least error & latency will win,” Musk tweeted.

But is that all there is to it?