NEO Founder Shrugs at Bitcoin Bubble; Says “It’s Okay” and Will Come Back Bigger if it Bursts

Just as Bitcoin has grown explosively this year, so has the debate on whether or not it is a bubble.

There’s the side that believes that Bitcoin is enormously overvalued and will burst at any moment, like Katsunori Sago, Japan Post Bank’s CIO, who said that its fair value is actually $100.

Then, there are others (like the average American who holds Bitcoin) who believe that its value will rise into the hundreds of thousands of dollars.

The founder of NEO, Da Hongfei, shot through both camps, saying that although Bitcoin is certainly a bubble, it’s perfectly fine the way it is.

“The price rise just makes everybody excited! A lot of attention to this industry, I think, is a good thing. [It’ll] bring a lot of exposure to us,” he said when speaking to CNBC.

When asked about concerns regarding the reputation that cryptocurrencies have for creating volatility and bubbles, Hongfei had this to say:

“I will say that there is [a] bubble in this industry. But I’ll say it’s okay. Every technology that is so disruptive [definitely will have] bubbles. Like trains, like automobiles, there used to be bubbles. With blockchain, I believe that we are probably in a later stage in the bubble, but even if it bursts, I think that the next time it comes up it will be bigger again,” he added.

He also believes that blockchain technology will be a “global trend” as countries begin to welcome the prospect of using it within their borders.

Many of the people who invest in Bitcoin may have a distrust for banks after the subprime lending bubble burst in 2008.

recent report has also shown that millennials trust Bitcoin more than they trust their savings accounts, probably because the returns are higher than the interest rates that these low-risk accounts offer.

It may be ironic, however, if Bitcoin bursts, leaving a large bracket of young investors with disappointing returns.

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