With institutional interest in Bitcoin still growing, rising demand might drive prices significantly higher. But we still doubt that Bitcoin will take over from established fiat currencies or usurp gold as the preferred store of value, which casts doubt over the sustainability of these rises. The macroeconomic consequences of a crash in crypto prices would be small. The growing crypto derivatives market is of potential concern, but if it starts to pose a systemic risk, regulation is likely to be stepped up.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services