Chatting about the Wild Price Swings of BitcoinJuly 1, 2019
Spender Bogart, stated, “For one, this is natural for any asset that has fixed supply, but fluctuating demand, particularly one like Bitcoin that’s early on in its life cycle.”
The above were the statements of Bogart when he was chatting about the wild price swings of Bitcoin and Libra from Facebook.
Several other assets are used as a store of value, particularly real estate. He also stated that people tend to buy art as it is beautiful. He also clarified that people put their money into Vintage Ferrari as it is a scarce asset and a store of value. Though they are stored in warehouses and vaults, they are valuable. There will not be a new Picasso or a new Ferrari. It is a kind of store of value.
However, Bogart had to state that anyone willing to invest in Bitcoin should do so in a conservative manner. They will have to allocate only 1% or less than that when investing in Bitcoin or any other cryptocurrency. He also stated that they should not consider touching that asset in 3 years after buying it.
When talking about Libra, he stated, “I think they’re going to get it out, and I think it’ll probably be successful.” However, he clarified that Libra and Bitcoin are different animals and that they might not compete in the same market.
Mainstream media looks at Bitcoin with intense skepticism. One of the recent headlines read, “Sorry, Bitcoin Fans. Digital Currency Is Still a Dream.”
Tyler Cowen, in the year 2013, wrote, “Imagine you hold a currency which will in the next period either double or halve in value. […] What a good deal that is!” However, after some time, he wrote a piece, which read, “How and why Bitcoin will plummet in price.”
By 2017, opinions changed a lot. He felt that this could be one way for risk-averse investors to store their wealth.
Deutsche Bank analyst recently said BTC might find use as a haven while central banks continue to push pro-inflationary policies.
Bitcoin is probably here to stay, and it has been quite resilient. The resilience of cryptocurrency has a lot to do with the volatility of the real-time world.
The official communique in the G20 documented the following historical sentence which read: “We welcome the FSB report on decentralized financial technologies, with possible implications for financial stability, regulation and governance, and about how regulators can enhance the dialogue with a wider group of stakeholders.”