BYRON WIEN: Bitcoin Will Collapse In 2014

Byron wienREUTERS/Sebastien NogierByron Wien, Vice Chairman of Blackstone Advisory Services, attends the GAIM International (Global Alternative Investment Management) hedge fund conference in Monaco, June 15, 2010.

Blackstone Group vice chairman Byron Wien does not have a lot of faith in Bitcoin.

Included on his list of annual “surprise” predictions is the possibility that acceptance of the digital currency collapses this year.

“In 2½ years the price of a Bitcoin has increased from $US25 to $US975,” says Wien. “The supply of bitcoins is fixed at 21 million with 11.5 million in circulation. Bitcoins lack gold’s position as a store of value over time. During the year Bitcoin’s acceptance collapses as investors realise that it cannot be used as collateral in financial transactions and its principal utility is for illegal business dealings where anonymity is important.”

Wien’s 2013 predictions did not pan out so well, but perhaps he will have more luck this year.

Click here for a list of all of Wien’s 2014 predictions.

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