crypto basset hound

Bitcoin [BTC] is an emerging global asset. Due to its uncorrelated (decentralised) nature, it is slowly gaining the status quo of ‘safe haven.’ However, volatility has always been its Achilles heel. Bitcoin’s price fluctuations are tremendous and it often creates FOMO or panic for its investors.

Moreover, trading in Bitcoin [BTC] follows no particular pattern of causation. Marcus Swanepoel, the CEO of London based Luno exchange reiterated this fact. He mentioned in an interview that “there is not much visibility in the market as we’d like to have.”

More often than not, China and the trade tension is credited with any unknown rise in crypto and Bitcoin. However, according to Swanepoel, “there are more people using Bitcoin is the US, Europe and certainly in Africa and South-East Asia.”

Bitcoin [BTC] indeed finds application in countries with a distressed economy. Venezuela, Turkey, Argentina, and so on have had to rely on cryptocurrencies like Bitcoin. Even Hong-Kong is citizens have reportedly increased their use of crypto due to the protests. Hence, Swanepoel mentioned,

China is a factor, but not the factor

Nevertheless, he also shone a light on a hard truth around the use of Bitcoin. He said that “Roughly about 90% I would put into the category of investments slash speculations.” Hence, according to him, only 10% is actually used as a medium of exchange.

Moreover, he also mentioned that gold is a better safe haven than BTC. He said,

Some people might be using Bitcoin as a safe haven. I would say that probably also in the minority if you compare it to gold for example.

However, despite the speculation and volatility, he was concerned with it being a viable investment opportunity. He said, “we’re on the broader macro-cycle for cryptocurrency”. Hence, according to him, most of the investors are looking forward 10-20 years into the future.

He said that only a small percentage of allocation to crypto could enrich a portfolio greatly. This is because of the “potential upside” which could yield “astronomical” return in spite of the volatility and risk.

Do you agree with Marcus Swanepoel? Please share your views with us.

The post Bitcoin is a Minority Safe Haven to Gold says Crypto Exchange CEO appeared first on Coingape.

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: