Changpeng Zhao, the CEO of the biggest cryptocurrency exchange by
trading volume, Binance, recently gave key insights on why the odds are
with Bitcoin in edging the world’s primary safe-haven asset, Gold.
In an interview on Channel News Asia, streamed on Youtube,
the popularly known personality in the crypto-verse discussed Bitcoin’s
prevailing bullish trend and why it could replace the precious metal as
the most favoured safe-haven asset.
“Gold is not very easy to transfer, you have to meet somebody
physically to actually transfer the gold. It’s relatively heavy, if you
have to carry it around airports, that’s really freaky as well. It’s
hard to store. You have to have physical space.
“It’s not easy to verify. You don’t know the density of the gold
you’re getting. On the other hand, you’re always guaranteed that if you
get some Bitcoin, you get some Bitcoin.
“Gold is not 100% limited in supply. It’s rare, but if somebody
discovers another gold mine, there could be more supply. Bitcoin is very
limited in supply. The way I view it is that gold is a very good store
of value, but its use case is sunsetting. Bitcoin’s definitely the
future,” said Zhao.
What they are saying
Last week, Deutsche Bank Research Strategist, Jim Reid, gave key insights
into what is making investors to view Bitcoin more as a tool to better
hedge their cash than traditionally safe-haven assets like gold.
“Bitcoin is up another +3% overnight and seems to be creating a
momentum of its own. It’s up over 70% in the last six weeks, as more and
more investors are starting to see it emerge as a credible asset to
invest in. There also seems to be an increasing demand to use Bitcoin
where Gold used to be utilized to hedge dollar risk, inflation, and
other things,” Reid said.
What you should know
The flagship crypto, Bitcoin, at the time of writing this report
traded at $18,053.08 with a daily trading volume of $25 billion.
Olumide Adesina is a France-born Nigerian.
He is a Certified Investment Trader, with more than 15 years of working expertise in Investment Trading.
Featured Financial Market Analysis for a Fortune Global 500 Company.
Member of the Chartered Financial Analyst Society.
Follow Olumide on Twitter @tokunboadesina or email olumide.adesina@nairametrics.com.
No comments :
Post a Comment