In an interview at CNBC’s morning show, Squawk Box, the founder of BKCM Virtual Assets, Brian Kelly, joined other panelists to discuss all matters concerning Bitcoin. One of the discussion points that got touched by the panelist includes what the Federal Reserve could do to kill Bitcoin.
The panelist in the morning show featured Brain Kelly, the founder of SkyBridge Capital, Anthony Scaramucci, and current CEO and chairman of Far Point Acquisition, Tom Farley.
What would the Fed need to do to kill bitcoin? @Scaramucci asks @BKBrianKelly #btc #federalreserve pic.twitter.com/hSolDHMi5e
— Squawk Box (@SquawkCNBC) August 8, 2019
According to Brian, who happens to be a Bitcoin lover, it is going to be extremely difficult to kill Bitcoin and US regulators should look into other ways that include regulating the crypto asset. In BKCM Virtual Assets CEO’s words,
“The interesting thing about Bitcoin is its value is whatever the market put on it. It is almost like working capital. How much working capital do you need to run the underlying business or the underlying economy? Right now, the market is telling its niche you need 20 billion US dollars of working capital. I want to argue that as Bitcoin continues to grow, we will be talking about a couple of trillions of US dollars of working capital. Bitcoin has much higher to go on the very short-term; it could drop to 6 billion US dollars.”
He continued,
“In terms of killing the number one crypto asset, Bitcoin, it is going to be very difficult as the cryptocurrency is much like the internet. You cannot regulate or kill the internet in the modern age and time.”
The CEO of BKCM Virtual Assets further added,
“Although the independent nature of Bitcoin, it is possible to take advantage of its choke points that are AML and KYC. We see it every day, individuals taking their fiat currencies and investing them to Bitcoin without leaving a money trail. Regulating and overseeing Bitcoin should be governments concern rather than killing it as this will enable the cryptocurrency is not used for illegal financial activities or money laundering activities.”
Bitcoin has been on an upward trend since the stock exchange market started witnessing plummeting of stock prices following the strain trade relations between the US and China. According to foreign exchange traders and investors, Bitcoin’s latest price surge does not reflect much how it is a safe-haven but rather its potential for up surging giving gains to traders and investors.
Early this week, the prices of Bitcoin appreciated by over 7 percent as US stock prices dropped by about 3 percent. Bitcoin seems to be joining the club of safe-haven assets that comprise of the Japanese Yen, gold, and government bonds. The so-called safe-haven assets usually hold or appreciate amid the turbulent times in the financial markets.
Crypto followers are urging the Feds to stop day-dreaming that they will one day kill Bitcoin and cryptocurrencies, given the fact that the future of money looks very different from today’s world. In the present time, there is an emerging consensus among businesses, governments, and investors that these alternative forms of virtual monies are going to control payments in the next decade.
At present, the majority agree Bitcoin and cryptocurrencies have high potentials to change the dynamics of transfer of money, and it’s going to be prudent for regulators and governments to respond differently towards the emerging technology. Despite the fact governments and regulators are warming up to cryptocurrencies, many are trying there best to kill the crypto industry by introducing sanctions in their jurisdiction.
There is no doubt that Bitcoin and crypto assets need to be regulated carefully to avoid money laundering and other illegal activities. On the other hand, cryptocurrencies and Bitcoin need to upgrade their security measures as hacks and heists are becoming a common thing in the industry, undermining their credentials as alternatives to safe-haven assets like gold.
If crypto exchange platforms manage to solve these issues of cybersecurity, Bitcoin could be on its way to becoming the newest safe-haven assets in the world.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.
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