Since the creation of Bitcoin (BTC), the narrative surrounding the value proposition of the asset has varied drastically. At first, the cryptocurrency was apparently pure, digital money. Now, BTC has been considered a digital gold by many experts, who affirm that the non-inflationary, borderless and fungible nature of the asset makes it remember the precious metal.
However, throughout the handful of civil war debates on the issue, many investors have claimed that Bitcoin is fast becoming the next global reserve asset. However, an industry commentator claims that the de facto King cryptography industry is not ready for such a title, despite fundamental developments.
Bitcoin remains a “risk” asset
In a recent thread on Twitter, Dan Zuller, a partner at Vision Hill Advisors, a “fund focused on cryptoasset & blockchain”, expressed his thoughts on the reasoning that Bitcoin could probably gain strength in universal and gloomy recessions. The former Citi employee said that, in its current form, “digital assets are still assets of” risk “, and therefore could be more susceptible to” contagion “, especially in a market winter induced by the macro bear.
Zuller pointed out that the fintech economy, which includes cryptocurrencies, will not be immune to the market’s decline. Supporting his claim that BTC will probably not remain in a stock market collapse, Zuller explained that historical slowdowns have affected public equity markets, especially the Silicon Valley stock, due to high beta values and the ability to sell. to facilitate volatile trade. And with that in mind, the investor added that this is likely to be the same with cryptocurrencies.
However, he continued to point out that Bitcoin (and potentially also Ethereum) is evolving and on the way to becoming a global reserve asset. However, he pointed out that it would be negligent not to notice that the eventual hegemony of BTC in that area of finance will not be established for “multiple macrocycles” since cryptocurrencies must still demonstrate their “monetization and economic independence”.
Great coverage against the “inflationary recession”
Ryan Selkis, the chief executive of Messari, a major cryptographic data aggregator and content portal, recently mentioned Bitcoin’s potential as a hedge against the “inflationary recession.” In other words, Selkis claimed that BTC is a Digital Value Store (SoV) and will accumulate traction in the next financial crisis, which he predicted is just around the corner.
According to previous BTS News reports, the industry expert, who was criticized for his firm’s exposure at XRP, noted that investors “will flock” to value stores, like digital gold, in difficult times. As it stands, the digital representation of gold is better represented by Bitcoin, and as such, BTC would likely see an influx of buying pressure once consumers lose faith in traditional markets.