Bitcoin (BTC) is located in the “upper left lower right corner,” and volatility should not scare off investors, according to the former head of the New York Stock Exchange.
In an interview with CNBC on June 23, Thomas Farley expressed his long-term faith in bitcoin and dismissed concerns about bitcoin’s price loss.
Bitcoin: Growth, But Not Just “Rise”
A day after CNBC expert Jim Cramer admitted selling his bitcoin holdings suggesting that BTC/USD had fallen to $10,000, Farley demonstrated much-needed mainstream optimism.
“As for recent price action, I am a little bit optimistic about it — Bitcoin is a very volatile asset class, in part because it is a new asset class,” he told the network.
“I have no doubt that it will go up in the long run, it will slow down – I still think that’s the trend that’s going from the bottom left to the top right, and I think we’ll see that trend in five years.”
With euro mining from China still on the radar, popular criticism of Bitcoin’s energy use was quickly dismissed as a temporary problem as well.
He continued, “I think this confusion is an interesting conversation, but in general I think it will be resolved because I believe that blockchain is inherently improving efficiency and will actually increase energy efficiency over time.”
Less confidence in gold. Bitcoin vs
However, Farley was more conservative in his predictions about bitcoin as “digital gold”.
With a market capitalization of $1 trillion now, Bitcoin should turn into a safe haven.
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“I think the upper bound at the moment is gold, which has a market value of about $10 trillion,” he added.
“For Bitcoin to one day surpass gold, it has to be a more acceptable form of currency — to be honest, I’m not sure it will work.”
Proponents argue that Bitcoin by its very nature will only face a matter of time before gold darkens due to endless supply and a failure to overtake Bitcoin in all aspects of “money.”
Precious metals fell sharply last week after comments on US Federal Reserve policy.
To beat gold, Bitcoin had to trade over $533,000 in current supply.