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“Bitcoin is similar to commodities like gold and oil”, Revolut CEO Nikolay Storonsky said. In this way, the company CEO offered a different view to JPMorgan executive Jamie Dimon, who has called the phenomenon a “fraud” that will collapse.

“They are definitely not a fraud”, Nikolay Storonsky said. Revolut’s co-founder said that, though people are less likely to use bitcoin in everyday transactions, the same could be said for commodities like gold.

“Real-world usage for gold is quite limited. But still there is a huge market, huge volumes that are being traded in the market, and these volumes determine the gold price. The question, ‘Where is the real gold price?’ No one knows. It’s the same with bitcoin. Volumes are increasing, the price is shooting up, there is no implication of bitcoin in the real world, it’s quite limited.”, Storonsky said.

He added that 99% of bitcoin transaction volumes are “speculation-driven,” with just 1 percent of volumes involving everyday applications. Storonsky, a former Credit Suisse trader, said the most famous digital currency was like another commodity in this aspect — oil. “If you look at the oil market, 90 percent of volume is speculation, 10 percent is real use case.”

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