'This Year, the Narrative is Bitcoin, Bitcoin, Bitcoin': Meltem Demirors

The Bitcoin (BTC) price has more than doubled since the beginning of this year, and it is currently trading at $8,108.91 according to CryptoCompare data.

Notably, the world’s most dominant cryptocurrency has surged by as much as 30% in the past week.

This Year, The "Narrative Is Bitcoin"

Commenting on the crypto market rally, during a recent interview with CNBC’s Fast Money, Meltem Demirors, the Chief Strategy Officer (CSO) at CoinShares, a digital assets treasury management firm, said that there’s “a lot of great progress being made.”

Demirors, a mathematical economics graduate from Rice University, believes that this year, “the narrative is Bitcoin” whereas last year it was about “speculative new tokens and protocols.”

According to Demirors: 

[It’s] good to see a return to Bitcoin and everyone is feeling good…and we’re seeing signs of life...there’s a lot of confidence right now.

Institutions Now Have A Better Understand Of How Bitcoin Works

She pointed out that critics had been arguing that Bitcoin transactions take too long to process and that the cryptocurrency is not scalable. In order to address this issues, several different blockchain projects were launched, however Demirors thinks it’s “really hard” to effectively resolve all the problems associated with the Bitcoin network.

She also mentioned:

What we saw in the meantime, [as other projects experimented with various new potential use cases for cryptos], the institutions that had spent the last two or three years learning about Bitcoin, started to understand it, and started to actually build platforms and products that [work with] Bitcoin directly…[Currently,] Bitcoin is the [digital] asset people know best, [and] it has the biggest brand name.

Expressing views similar to most crypto analysts, Demirors confirmed that Bitcoin has the most secure cryptocurrency network out of all other cryptocurrencies. She pointed out that Microsoft, which had been experimenting with the Ethereum network, is now in the process of implementing decentralized identity management solution on top of the Bitcoin blockchain.

High Volatility In Tech Stocks Is Making Bitcoin “Not Look So Crazy To Investors”

Demirors believes there’s currently a lot of global macroeconomic-related unrest and there’s also a lot of volatility in the markets. She added:

Times have changed, this is not 2018. The end of 2018 was rough in capital markets. Now we’re seeing a lot of volatility in tech stocks. So, Bitcoin is starting to look maybe not so crazy to investors.

Per the CoinShares CSO, financial privacy-related crypto technology is becoming increasingly popular. This, as new regulations will be introduced, in order to ensure that people’s data is not being used by third parties without their approval.

Bitcoin Still More Suitable For Retail Investors, Not Institutions

Responding to a question about bitcoin’s price movements, Demirors said that “the more people that decide to hold the [pseudonymous cryptocurrency,] the better it is for the price.” She also thinks Square’s Cash app is one of the main ways institutional investors gain exposure to Bitcoin.

However, she acknowledged that Bitcoin is still better suited for retail consumers and not so much yet for institutions.

SEC Says Tighter Regulation Needed Before Bitcoin Can List on Major Exchange

Neil Dennis

Bitcoin must be more tightly regulated before it can be traded on major exchanges the head of the top U.S. market watchdog said on Thursday.

Speaking at the Delivering Alpha conference presented by CNBC and Institutional Investor, Jay Clayton, chairman of the Securities and Exchange Commission (SEC) criticized the lack of transparency around cryptocurrencies and the exchanges they are traded on. He said:

If [investors] think there’s the same rigor around that price discovery as there is on the Nasdaq or New York Stock Exchange they are sorely mistaken. We have to get to a place where we can be confident that trading is better regulated.

Market Capitalization

Bitcoin, with its market capitalization of nearly $178 billion, is the biggest cryptocurrency and, if it were a company, would rank in the world's top 50 by market cap. Yet, while bitcoin derivatives trade on the world's biggest futures exchange - CME Group - the digital token itself remains without a major listing.

While US regulators remain equivocal about how bitcoin and other cryptocurrencies should be regulated, the sector's price volatility and vulnerability to fraud, security breaches and other forms of criminal activity, have ensured the SEC remains suspicious about allowing retail investors greater access to the sector.

Indeed, the SEC continues to block efforts by several financial groups to issue bitcoin exchange-traded funds (ETF). On Tuesday, the CBOE BZX Exchange withdrew its ETF proposal, filed with the SEC in January, to list shares of the VanEck SolidX Bitcoin Trust.

 

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