Once bitcoin becomes “more of a mainstream investment,” it could start trading like gold, Bobby Zagotta opined.
Bobby Zagotta – Chief Executive Officer of Bitstamp USA – believes there is currently a “little bit of de-risking” in the digital asset sector as many investors have turned to stablecoins. However, he predicted that bitcoin could start trading like gold soon, assuming private cryptocurrencies gain more mainstream adoption.Bitcoin’s proponents often compare the asset to gold, arguing it is a hedge against inflation and an alternative investment strategy during periods of a financial crisis .
Zagotta outlined the uncertainty that is reigning in financial markets today. In his view, the majority of investors currently stay away from risk assets such as digital currencies. The constantly rising prices of goods and services, the COVID-19 pandemic, and the military conflict in Ukraine have caused many people to start putting money in less volatile assets, including stablecoins, he stated.on digital currencies.
“Its tone is, at least to my read, focused on innovation and competitiveness for the US. We think that is incredibly important. President Biden is not only saying that the US should accept crypto but also be a leader in this emerging global arena.”Based in Luxembourg, Bitstamp is among the leading European crypto exchanges. It allows trading between fiat currency and numerous digital assets, including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and more.
I see that happening. Gold is a slow mover and not easy to store.