World-renowned economic historian, Niall Ferguson, thought Bitcoin was a ‘complete delusion’ when his son first suggested buying some five years ago. But now he admits he was ‘very wrong’ and believes the future of Bitcoin is bright.

Speaking this week at The Australian Financial Review Business Summit, The author of ‘The Ascent of Money‘ explained why his opinion about cryptocurrencies has changed.

“I was very wrong, wrong to think there was no… use for a form of currency based on blockchain technology,” he said, according to the AFR.

“I don’t think this is a complete delusion.”

Mr Ferguson told the audience he watched in despair as the Bitcoin price rose from US$400 when his son first suggested it as an investment, to above US$16,000.

He says it’s significant that since the high, the price of a Bitcoin still remains far above its lows.

“(Bitcoin is) a bit like an option on digital gold,” he added.

The future of Bitcoin

Niall Ferguson believes the future of Bitcoin is bright due to the fact it is unlike any other asset. He says that distinction will make it attractive to some investors in the years to come.

His predicts the financial world will see significantly more innovation in the next decade, as opposed to the previous decade, in which innovation was constrained by post-GFC restrictions.

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