Meltem Demirors, CoinShares’ Head of Growth, on CNBC drew attention to the reduced volatility of the leading cryptocurrency and the risk its absence in investment portfolios.
enjoyed chatting w @CNBC Squawk Box Asia about #Bitcoin and why the best is yet to come for this asset class. $5 trillion of dry powder sitting on the sidelines with rates at zero isn’t going to buy treasuries, gold, or FAANGs…
what do you think? 👇https://t.co/CsR7Pv2fwi
— Meltem Demirors (@Melt_Dem) December 21, 2020
“We have seen a huge shift in public consciousness over the last nine months [since the start of the COVID-19 pandemic]. If before you were betting your career by adding Bitcoin to an investment portfolio, you now risk losing your job if you have not taken on such a risk,” the expert said.
Demirors attributed her position to the response of monetary authorities to the economic crisis. She believes that the enormous amount of money printed by central banks has driven asset inflation. This has pushed the S&P 500 index and tech stocks to record highs, sparked a rally around Tesla, and heated housing prices.
“Five trillion dollars are idle, waiting to pour into somewhere. I am firmly convinced that Bitcoin will attract this capital, because investors will not be able to find positive returns. Bond yields will stay at zero for at least the next few years, and we do not see growth potential in stocks or even exchange-traded products,” she stressed.
COVID-19, the Fed’s printing press and uncertainty: why now is the time to pay attention to Bitcoin
In support of the described scenario, Demirors cited the decline in the volatility of the leading cryptocurrency, comparing it with the popular Tesla stock on Wall Street. On CNBC she noted that the latter had risen sevenfold since the start of the year, while Bitcoin had risen only 130%.
The Head of Growth at CoinShares believes the crypto industry has matured and evolved considerably over the past two years.
“The strategists of the world’s largest investment firms openly say that Bitcoin is an excellent place to park capital in the coming years,” Demirors emphasised.
As noted, Bridgewater Associates founder Ray Dalio admitted he could be wrong about Bitcoin. In December he described the first cryptocurrency as an “interesting” alternative to gold.
The head of BlackRock, Larry Fink acknowledged the possibility of Bitcoin and other cryptocurrencies becoming a new asset class.
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