On Thursday night, during a panel discussion on CNBC’s Future’s Now, the experts, including Gabor Gurbacs of VanEck/MVIS, were optimistic on Bitcoin’s ability to attract serious “de-risk” investment in the near future as prices top $7,000 for the first time in a while. Gurbacs said that a steady price growth like the one we’re seeing now would attract more investment away from gold, making Bitcoin a “digital gold” of sorts.
Outlaying Risk With Bitcoin
Gurbacs, director of digital asset strategies at VanEck/MVIS, who has been heavily involved in the development of cryptocurrency investment for institutional investors, recently making progress toward creating a Bitcoin ETF license, believes that Bitcoin is developing into an investment vehicle to complement or even compete with gold. He explained:
“Bitcoin is used as digital gold today. It’s a de-risk asset. Basically, if someone wants to outlay systematic risk, then one would go to access gold or digital gold (bitcoin).”
The impact of this strategy being used would be significant. He continued:
“Gold today has around $7 trillion outstanding. If you take, say, 5 to 10 percent — I’ll let everyone do the math — bitcoin has upside.”
Barriers to Investment Being Eroded
Gurbacs explained how crypto had been held back in the past by market and structural factors, that is to say, how profitable it is to trade and how legal it is to trade. He sees the increased market cap as a big boon to the former factor, that of profitability of crypto trading for big investors who need liquidity. He said:
“We believe that there is sufficient liquidity. We believe there is pricing benchmarks. We believe there is a way to integrate Bitcoin into the financial ecosystem that we are used to for ETFs, stocks, bonds and commodities,”
As for the structural and legal factors preventing more money flowing into the space, he echoed the general opinion that some increased regulation would improve investor confidence in the asset class.
Talk of Bitcoin ‘Moon’ Again on the Cards As Prices Beat $7k: Expert Panel Discusses Potential for BTC As ‘Digital Gold’ was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.