Investment strategists at DBS, Southeast Asia’s largest bank, say bitcoin is unique, whether the price is volatile or not.” If we just look at it purely on a price basis, you’re going to see a lot of volatility, and that doesn’t inform a lot about what gains it will actually bring,” the DBS strategist stressed.
DBS strategist talks about the uniqueness of bitcoin
DBS investment strategist Darryl Ho spoke about bitcoin at a recent media briefing, Finews Asia reported on Friday. He elaborated, explaining that “if we just look at it purely on a price basis, you’re going to see a lot of volatility, and that doesn’t inform a lot about what gains it actually brings.”
I think bitcoin is unique, whether the price changes or not.
Ho went on to point out that bitcoin’s uniqueness is driven not by its price, but by its utility in allowing value transfer in a decentralized manner without the need for a central counterparty to clear transactions, the publication reported.
“Most methods of trading assets require a central clearing house to validate transactions,” Ho elaborated, adding that bitcoin offers opportunities that fiat money does not. The strategist emphasized that bitcoin’s 13-year track record further bolsters confidence in cryptocurrencies, “because the fiat system is still controlled by the central bank.”
“If you held certain rationed assets at the beginning of February, you may not have been able to liquidate them freely because sometimes the exchanges were closed,” he continued, stressing:
However, the bitcoin market was open 24/7. So there was a way to raise cash and liquidity if needed. Prior to Bitcoin, there was no way to do this.
DBS launched a digital asset exchange in December 2020. The platform supports trading in four cryptocurrencies: bitcoin, bitcoin cash, ether,XRPIn August, the bank revealed that trading volume on its digital asset exchange had surged, and that “investors who believe in the long-term prospects of digital assets . are gravitating to trusted and regulated platforms to access digital asset markets.” Last month, DBS rolled out self-directed crypto trading via its Digibank app.
Piyush Gupta, CEO of DBS Bank Group, said in March that he does not believe cryptocurrencies will become money, but “could be a substitute for gold and its value.” The bank also recently partnered with The Sandbox to enter the metaverse.
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