On Wednesday (February 19), Mark Yusko, the Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management, talked about why Bitcoin is performing so well and why it should continue to do well in the future.
Yusko's comments on Bitcoin came during an interview on CNBC's post-market show "Fast Money" (as part of a segment titled "Crypto Craze"), where talked to anchor Brian Sullivan and the Fast Money traders (Tim Seymour, Karen Finerman, Dan Nathan, and Guy Adami) during a time when BTC-USD was trading at $9,630 on Coinbase (having dropped from over $10K just shortly before the interview).
Sullivan opened the segment by asking the question: "Is the Bitcoin bonanza back in play?". He then pointed out that despite yesterday's flash crash, Bitcoin was still up over 30% so far this year, and that "the reality is that Bitcoin is red-hot, absolutely red-hot, along with a lot of the other cryptos."
His first question for Yusko was what makes Yusko so optimistic that the Bitcoin price will be able to continue to go up "in an extremely volatile market."
"I think the best thing about the Bitcoin market today is the fundamentals. The fundamentals continue to increase and improve. Adoption is growing: the number of wallets is up, the number transactions is up.
"All the trends -- all the fundamentals really -- continue to get stronger, and we've also got the halving event that's coming up in May, and one of things that does [is] that [it] compresses supply -- there won't be as many rewards every 10 minutes [for] every [mined] block, and so that'll... decrease pressure on the sales from the miners, and prices usually adjust around those events. So, we see a lot of upward momentum through the mid half of this year and into the second half you'll probably get to see a lot of the chasing that we saw back in 17, just like we're seeing the chasing of the stock market today."
As for yesterday's price drop, Yusko had this to say:
"If it's down 5% today, should buy it now, buy it tomorrow, buy it every day, stack your sats, build that portfolio, and then deposit some at one of our portfolio companies -- BlockFi -- and get 8% interest on that bitcoin. It's a good thing."
Fast Money trader Guy Adami then asked Yusko if interest rates "going lower across the globe is bullish for Bitcoin or crypto in general."
"I quoted you, and I keep quoting you: 'in the world of rogue central bankers, Bitcoin is king'.
"Look, interest rates around the world are all going to zero -- all of them. US rates are going to zero, Chinese rates are going to zero, they're all going to zero.
"It's all because of demographics and deflation and too much debt, and in a world where your only choice -- you can't pay back the debt, you can't default on the debt -- [is] to inflate it away by devaluing your currency.
"The central bankers are going to print. That is massively bullish for Bitcoin, and Bitcoin is your opportunity to opt out of the fiat fiasco that's going on right now"