Hedge fund Laureate Trust has acknowledged the phenomenal rise of bitcoin, saying the current plunge in bitcoin price at $522.57 as a good opportunity to buy the virtual currency which it expects to increase 50 percent very soon.
Beverly Hills, California-based Laureate rated bitcoin as a speculative buy in February after it weathered two storms that saw it plummet 70 percent within a few weeks.
CEO Peter Tasca of Laureate Trust stated in a press release, “Whenever you have an instrument that trades over 300 million US dollars a day, it must be recognized. The digital currency works, Bitcoin has greater volume transactions than Western Union and we anticipate it will overtake PayPal later this year.”
“In the next one or two years, Bitcoin can surpass the dollar transaction volumes of other established payment companies including Discover, and even American Express, MasterCard, and Visa,” stated SmartMetric CEO Chaya Hendrick.
Data on Bitcoinwatch.com shows that the average daily transactions involving bitcoins are nearly $300 million, pushing the currency closer to overtaking PayPal for the first time this year on transaction volume basis.
EBay, which owns PayPal, recently dubbed bitcoin traders BitPay and Coinbase as its rivals in the electronic funds transfer sector.
Tasca noted that governments had moved in to create a favorable regulatory environment for bitcoin, which makes it safer and lowers the risk of volatility that was experienced in the recent past. Laureate also adds that the bankruptcy of Mt. Gox had spawned new opportunities for firms that secure bitcoins such as Circle.com, and provided financing opportunities for existing bitcoin-related firms.
Circle’s CEO Jeremy Allaire said that his firm is regulated as a money transmitter, and that it has developed and invested in a technology that ensures customer funds are safely stored. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
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