The General partner of the venture capital company Blockchain Capital Spencer Bogart spoke with Bloomberg and said that he considers Bitcoin an excellent contender for the role of safe store of value in the long term. However, he was not so optimistic in terms of how to behave in the price of the digital currency in case of serious economic turmoil.
According to him, the risk of devaluation of the national currency can indeed stimulate the growth of Bitcoin prices. However, he believes that BTC is unlikely to feel good about themselves in a serious economic crisis.
I think in the future Bitcoin will become a safe haven […] And when you have the risk of devaluation [of the depreciation of the national currency — approx. editor], things like Bitcoin will certainly look quite attractive. I think that is why recently the largest price of bitcoin has gone up.
But Bitcoin will have to survive in the event of a really serious economic collapse, a liquidity crisis — that is, the ability to transform the asset into money and the global financial crisis. However, Bogart soothes the fact that full-scale economic crisis in the short term there are no prerequisites.
Devaluation — a new reason for the growth of Bitcoin
CEO of cryptocurrency trading Bank Galaxy Digital Mike Novogratz seem to agree with Bogart on this issue. The risk of devaluation of traditional money, of course, portends the growth of price of BTC. Here is what he said on this account in early August.
If you consider that the dollar is worth more than 7 yuan, a currency war, the instability in Hong Kong and the beginning of mass flight of capital, we can say that there is every reason for the rally of Bitcoin prices.
Bitcoin investor and founder of the consulting Agency Morgan Creek Capital Anthony Pompliano also commented on the current situation on Twitter. In his opinion, “Bitcoin does precisely what it was intended — to be used in times of macroeconomic instability”.
Let me remind you, after all, Bitcoin was created by a team of cryptographers as a new form of economic system, and the launch of the project was a kind of reaction to another global financial crisis in 2008.
Is it worth to bet on Bitcoin now?
As it turned out, some investors are recommended to consider Bitcoin as a safe Harbor and not to invest it in this way. At least for now. However, other savings instruments – like gold – also not a best choice for investments despite the uncertainty in global markets. Investment portfolio Manager at Valley Forge Capital Management Dev Kantesaria gave a short interview to the tabloid market Markets Insider said.
Bitcoin and gold — more tools of collecting. In fact, you have no protection of savings, you are simply speculating. For me this is no different from any other speculative play.
According to Kantesaria, the largest cryptocurrency has some fundamental problems, primarily related to its limited applicability. In General, the representative of the aforementioned hedge Fund makes a bet on the us stock market and expect a good return in the next ten years.
What do you think, what will happen to Bitcoin in case of serious problems in the global economy? Will the people trying to preserve their savings with the help of cryptocurrency and does it make sense? Share your opinion in our cryptodata billionaires. However, while only future.
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