Douglas Borthwick, CMO of INX Ltd. discusses the future of Bitcoin.
The recent surge in Bitcoin prices has shocked some new believers, but cryptocurrency will never demand gold as a store of value or a means of exchange, some Wall Street investors say.
The value of the cryptocurrency has risen more than 70% in the last six weeks, with the coin surpassing 18 18,000, 11% of its all-time high. At the same time, gold prices are trading in a tight range between 8,850 and 9,950.
“Trying to act like Bitcoin is a kind of improved version of gold, it’s disrupting gold because it’s a better store of value, it’s a better means of exchange, it’s pure nonsense,” said Peter Schiff, CEO of Westport. “Peterport, CEO of Westport, said. , Connect based Euro Pacific Capital. “It’s not a value store because it has no value.”
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Gold, seen as a safe haven for investors looking to retain assets during market turmoil such as the coronavirus epidemic, uses it not only in trade, but also in fine jewelry and electrical conductivity.
Bitcoin created – or mined – by verification of transactions in blockchain digital ledgers has no use other than as a limited exchange medium and has historically changed prices extensively.
At the beginning of the Trump administration, the rise in the price of Bitcoin led to speculation that it might replace the sovereign currency. The excitement surrounding Bitcoin in December 2017 stimulated the launch of Bitcoin futures and led to many platforms allowing consumers to buy and sell digital currency.
A wave of interest and Washington sparked regulatory concerns in Washington and held a hearing on Capitol Hill in October 2018.
“Crypto all scams and bubble mother or father,” Roubini said in testimony before the ro Crow Associates CEO and New York University’s Stern School of Business Only business professor, nyuriyala Su Rou Bini, US Banking, Housing and Community Affairs Committee of the Senate.
Rubini tweaked his vote on Bitcoin last week, telling Yahoo Finance that cryptocurrency could be a “partial store of value” due to its limited supply.
However, Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund with assets of 98 98.9 billion, tweeted on Tuesday that Bitcoin is due to its volatility and the fact that it has little to do with value. , So it “does not protect” purchasing power.
Google trends show bitcoin searches are just a fraction of their December 2017 top. While cryptocurrency trading has gained traction, it has not been used in digital purchases.
“Many of the companies that used to make a kind of leap on the Bitcoin bandwagon in 2017 are all gone,” Schiff said. “No one is interested in Bitcoin as a method of payment anymore.”
However, there are other uses for it. Last month, PayPal became the latest company to allow users to buy, hold and sell Bitcoin and other cryptocurrencies and plans to give customers the ability to use assets as a source of funding in their PayPal digital wallets, which are accepted by 26 million merchants worldwide.
All transactions with that seller, however, will be settled in Fiat currency.
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“Bitcoin has no real use.” Schiff said. “You sell bitcoin after you buy it, but you need someone else to buy it from you. It’s a huge pump and dump.”
