AT&T board member Glenn Hutchins: Bitcoin may lose like Betamax tapes

Glenn Hutchins, leader of North Island and simultaneously member of the directorate of AT&T, one of the key companies of American telecom market, is not sure if Bitcoin would manage to always stay in the first place. He compares the possible future scenario to how the old Betamax video tape format was outplayed by the VHS.

Instead of comparing Bitcoin to gold like many other observers do, Glenn Hutchins thinks that Bitcoin is more like copper because it is used for utilitarian purposes and still expensive.

While it may seem strange to compare the digital currency market to the market of video tapes, there is absolutely nothing extraordinary in this approach. For example, Bitcoin’s possible downfall to old cheap prices is often compared to the dotcom bubble of 1990s and tulip bubble which happened long before the 21th century. In a slightly more positive example, one of the Federal Reserve Banks of the United States has compared the 2017 price growth to a situation in which the U.S. mortgage market was in the early 2000s.

Cryptocurrency is indeed in its early stages, and the view about the future market being completely different from the current situation has also been shared by several other experts.

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