It seems unlikely that cryptocurrencies will replace traditional currencies at the moment, at least in terms of availability in the short term.

However, the situation may be different for reliable assets such as gold. This view was brought up by the Bank of Singapore chief economist Mansoor Mohiuddin:

“Cryptocurrencies can partially replace gold by offering an electronic store of value instead of a physical store of value.”

Cryptocurrencies must overcome hurdles such as high volatility, legal acceptance, and reputation risks before this happens, according to a research note released by The National News on Sunday. According to the opinion of the chief economist of Bank of Singapore, a more realistic scenario is envisaged where Bitcoin will replace gold as its physical regulation and become an “electronic store of value”. According to Mohiuddin, to implement this scenario, Bitcoin will need to gain higher levels of trust, reduce its volatility, and gain approval from the authorities.

The researcher also expressed optimism about the appointment of Gary Gensler as chairman of the US Securities and Exchange Commission (SEC). He believes this will increase the chances of launching a Bitcoin ETF:

“SEC’s approval for Bitcoin or another cryptocurrency ETF would be a very important milestone. This will not only provide people with a reliable investment option, but also attract new participants to the industry. Liquidity will expand, volatility will decrease and bad reputation will fade away. ”

It is worth remembering that investment firm VanEck has filed a new application for Bitcoin ETF registration. Will ETF be approved as expected?

Mansoor Mohiuddin also emphasized that the volatility rate of the largest cryptocurrency, which is 90 per month, is 6 in the euro and 16 below, saying, “Instead of being an anti-looping safe haven like gold, Bitcoin is still going in correlation with stocks and other risk assets.” used.

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