With a market capitalization of $ 727 billion, Bitcoin continues to break records in the world of virtual currencies. It has, in fact, established itself in recent years as the most famous cryptocurrency, by itself totaling 55% of the market capitalization on the market. Despite this actual success, many people continue to disbelieve in this currency, thus exposing themselves to certain risks.
The explosion is yet to come for Bitcoin
In 2018, Mt trustee sold around 11 million bitcoin cash and $ 158 million bitcoin. While virtual currency has already proven itself as an alternative asset, there are still many who believe that crypto has no place in the monetary system. This issue has been debated by several members of the community over the past two years. In the recent podcast ” What Bitcoin Did “With Nik bhatiathe author of Layered Money , the future of Bitcoin was still the topic of discussion.
The famous author claimed that bitcoin-ignorant trustees are running the risk of not correctly identifying the “monetary reality”.As for the BTC tipping point, Bhatia claimed that the Bitcoin explosion was yet to come. The movements that have been noticed so far are not enough to say that the explosion has happened.
Supply inelasticity dramatically increases demand which makes users feel like they are already at the “tipping point”. Speaking of the fiduciary duty of BTC, the author of Layered Money maintains that the asset management sector is subdivided into two parts. The first part according to him is that of researchers who believe that monetary technology as we know it has been transformed by bitcoin. The second part is that of fierce opponents of cryptocurrency and those who are simply on the sidelines.
Bitcoin-ignorant fiduciaries dismiss new, alternate reality according to Bathia
During this show, the host Peter McCormackcited a few examples to support the claims of Bhatia . McCormackclaimed that most financial professionals who have ignored cryptocurrency today admit that they surely missed something important. Thus, after its CEO in 2017 qualified Bitcoin as a “fraud”, the society JP Morgan Chase , has now fallen into the category of institutions that accept investments in BTC.
ForBhatia,two scenarios are possible for institutions that rule out cryptocurrencies. Asset managers, he said, have a fiduciary duty to own bitcoin, for the “Societal change” and “economic benefit” that this implies. To ignore bitcoin as a “growth manager” is to ignore the birth of an alternative monetary reality. However, the author acknowledged that the “Price volatility” bitcoin could justify investment managers who do not yet adhere to this currency.
Bitcoin is a currency that raises many questions from the various financial players. While some opt for an acceptance of the new currency, others prefer to ignore it and ignore it. In either case, the trustees are at risk.
The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.