Nexo Co-Founder: Bitcoin Doubters Are Running Out Of Reasons

Michael LaVere
  • Nexo exec says bitcoin doubters are running out of reasons. 
  • The price of BTC broke $12,600 for the first time in over a year. 

Bitcoin doubters are running out of steam in 2019, especially as the price of BTC trends towards new highs. 

No Longer Doubting Bitcoin

Antoni Trenchev, co-founder and managing partner of cryptocurrency lending startup Nexo, appeared on CNBC  onJune 25 to take aim at bitcoin detractors. In the interview, Trenchev explained that bitcoin has been declared dead more than 300 times, with 90 occasions occurring in the past year. 

Nexo Antoni Trenchev Bitcoin DoubtersAntoni Trenchev appeared on CNBC to discuss bitcoin's price rally | Source: CNBC

Crypto bears such as Warren Buffett and Peter Schiff have continued to call for the demise of bitcoin, despite the price trading above $11,000. Trenchev declared that bitcoin “has risen from the ashes yet again.”

He continued, 

“I think, you know, the doubters are having a really hard time continuing their cause.”

Institutional Interest In Cryptocurrency

Trenchev gave his reasons for the increased rise in bitcoin price. He highlighted institutional participation, including the launch of JP Morgan’s JPMCoin pilot at the end of the year. Geopolitical turmoil has also been favorable for the price of bitcoin. 

In early April, concerns over Brexit sparked the initial rally which saw bitcoin jump above $4,000. More recently, deteriorating US-China and US-Mexico trade relations have led to anxiety in the stock market. With President Trump now threatening sanctions against Iran, bitcoin is becoming a favorable digital asset for investors fleeing traditional markets. 

Set For New Heights in 2019

Despite crypto proponents losing confidence during last year’s bear market, Trenchev believes skepticism is shifting towards current bitcoin detractors. 

He told CNBC, 

“[During] the bear market of 2018, we’ve seen even the harshest proponents turning skeptical at some point, and this usually is the inflection point from which, you know, assets start rallying again, but I think it is really about institutional support and implications that it has in terms of mass adoption.”

Trenchev also gave a nod to Facebook’s Libra. While Facebook has created a storm of global regulatory concern over Libra, the digital currency has driven new interest into cryptoassets -- even if bitcoin's price was already on the rise. 

In all, Nexo’s co-founder believes it is more difficult to doubt bitcoin in 2019. The landscape for crypto has shifted since last year’s market collapse, which will provide a springboard for adoption and price.

A Glimmer of Hope Emerges As Bitcoin Price Rises Above $8,100

Siamak Masnavi

On Wednesday (November 20), despite the prevailing "risk-off" sentiment (due to the current state of the trade talks between the U.S. and China), Bitcoin is managing to stay above the $8,100 level.

According to a report published in TheStreet at 09:30 EST (14:30 UTC), shortly after the U.S. markets opened on Wednesday, the Dow Jones Industrial Average (DJIA) was falling "after China condemned a U.S. Senate resolution supporting human rights in Hong Kong, while President Donald Trump threatened to boost tariffs if Washington and Beijing are unable to negotiate a near-term trade agreement."

Per data from CryptoCompare, although Bitcoin started this day at $81,17, by 10:20 UTC, it had fallen to $8,062. However, since then the price has recovered, and Bitcoin is currently trading at $8,138, up 0.58% in the past 24-hour period:

BTC-USD 24-Hour - 20 Nov 2019.png

Bitcoin's market cap is currently around $146 billion, and Bitcoin's market cap dominance is just above 66%.

One interesting Bitcoin-related tidbit that came out today has to do with the crypto holdings of Dan Schulman, the CEO of PayPal.

He was asked during an interview with Fortune the following question: "Do you personally own any cryptocurrencies?" He answered: "Yes. Bitcoin." The follow-up question was: "Only Bitcoin?" Schulman replied: "Yes."

In other Bitcoin-related news, on Tuesday (November 19), the New York State Department of Financial Services (NYDFS, aka DFS) announced that it had granted a charter under New York Banking Law to Fidelity Digital Asset Services, LLC (FDAS) to "operate as a limited liability trust company as part of the state’s rapidly growing virtual currency marketplace." 

Linda A. Lacewell, the Superintendent of NYDFS, had this to say: 

DFS will continue to provide regulatory oversight of new technologies to both foster innovation and protect consumers, companies, and markets. This approval is further evidence that innovation and consumer protection can coexist in New York’s evolving and expanding financial services industry.

NYDFS's press release mentioned that FDAS had been authorized "to provide a virtual currency custody and execution platform, on which institutional investors and individuals can securely store, purchase, sell, and transfer Bitcoin."

Michael O’Reilly, Chief Operating Officer for FDAS, stated:

The custody and trade execution services that we provide are essential building blocks for institutional investors’ continued adoption of digital assets. The designation as a New York Trust Company under the supervision and examination of the DFS builds on the credibility and trust we’re establishing amongst institutions and other market participants.

 

Featured Image Credit: Photo via Pexels.com