Introduced more than a decade ago, bitcoin has been adopted and tested by many. While there is significant support for the world’s first cryptocurrency, the head of over-the-counter (OTC) at Kraken exchange, Nelson Minier, thinks that to label bitcoin a ‘safe haven’ is not justified. In an interview, he shared his thoughts and suggested that it was a bit too early to consider bitcoin a safe haven for investors.
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The interviewer, Jill Malandrino, conversed with Minier and explained that as bitcoin was not exposed to the restrictions and policies faced by fiat, it was a safe haven. To this, Minier responded immediately with his opposing views.
He stated that bitcoin is still a very volatile asset. He explained that when the market was not appearing to be promising, the bitcoin price rose, as no one could anticipate this before the rise and shows that bitcoin is a risky asset.
Volatility has been an important attribute of the world’s largest cryptocurrency by market cap. Not much luring for the traditional investors, the volatility of bitcoin shows that its price is not under anyone’s control so it can skyrocket or drop down to the ground, quite unexpectedly.
The price of bitcoin obeys the fundamentals of supply and demand, thus volatility is a signature trait among cryptocurrencies. As this quality is glued to bitcoin, Minier found the crypto asset risky but capable of returning substantial returns.
Despite not accepting bitcoin as a safe haven, Minier elaborated that bitcoin is heading there. He expects bitcoin’s demand to increase and also admitted that bitcoin will become a safe haven for investors.
He also revealed his take on the participation from institutions and admitted that there is no rapid progress but the pace of developments are rather slow and gradual. According to him, the fear of missing out (FOMO), should have brought more portfolio managers into the crypto space. However, he added that once the potential of bitcoin is understood by people, most of them would start putting in efforts for acquiring it.
During the interview, he also shed some light on bitcoin lost due to hacks and other activities and mentioned that bitcoin left to mine are less than bitcoin already lost. This means that there would be a scarcity of bitcoin in the future because of the remaining limited supply, consequently attracting more people due to FOMO factor.
Few days ago, the managing partner and the head of research at Fundstrat Global Advisors, Tom Lee also gave his perspective on bitcoin. Quite opposite to the mindest of Minier, Lee confidently stated that bitcoin has become a safe haven for investors.
While shedding light on the trend evident in markets, he stated that bitcoin price surges whenever there is a state of turmoil. At that time, he backed up his claim by saying that people are finding ways to protect their money and concluded that bitcoin is definitely a safe haven for investors.
Furthermore, Lee talked about bitcoin’s performance this year and told that it had improved. In December 2018, the price for bitcoin revolved around $3000 while in 2019, bitcoin managed to reach $10,000–$12,000 levels. Clarifying that bitcoin is a smart bet, he predicted that bitcoin’s price could see a significant rise by end of the year.
Both Minier and Lee are important and renowned personalities in the crypto space. They both shared different perspectives on bitcoin’s achievement and both agree that bitcoin will become extremely significant in the future.
To explore how the world’s first truly decentralized cryptocurrency will turn out be in future, store of value or medium of exchange, BlockPublisher reached out to the CEO of Aximetria, Alexey Ermakov and took his views:
“Bitcoin is volatile like any other financial or derivative financial instrument, but it is still not without all those shortcomings in limiting productivity. Therefore, it is already finding use as an alternative to saving money in those countries where the national currency is more volatile than BTC, or as a means of transferring value when it comes to large cross-border transactions. Nevertheless, there is no way to stop the progress, as well as the development of bitcoin in all monetary qualities.”
Bitcoin is a volatile yet popular cryptocurrency among many investors and traders. Nothing for granted could be taken for now because the volatility feature of bitcoin adds extreme risk to crypto investments. In addition to that, it also creates the possibility of gigantic returns but what will be the fate of bitcoin if it’s price continues to fluctuate, only time will tell.