A senior analyst at management firm Bridgewater hinted that the firm will not move into Bitcoin until regulatory clarity is there.
Helen Partz
2 hours ago
Bitcoin needs clear regulations to be less volatile, Bridgewater analyst saysBitcoin will become more stable and liquid when regulatory certainty is in place, Bridgewaters director of investment research argued.
8643 Total views
20 Total shares
Listen to article
0:00
News
A senior analyst at asset management firm Bridgewater believes that regulation could potentially make Bitcoin (BTC) a good asset for institutional investors.
Bridgewater director of investment research Rebecca Patterson claimed that regulatory certainty around Bitcoin would solve some of the cryptocurrencys biggest problems associated with high volatility and low liquidity.
In a Feb. 24 interview with Bloomberg, Patterson said that issues like volatility and liquidity remain the main hurdles for Bridgewaters potential move into Bitcoin.
“Right now Bitcoin can move 10% on a tweet, that‘s not exactly a store of wealth for most institutional investors. So the volatility of Bitcoin is about 10 times that of your dollar, it’s still double that of the Venezuelan bolivar,” the executive said.
Patterson went on to say that both the volatility problem and liquidity issues would subside if Bitcoin becomes a better-regulated asset:
“The more you get a real regulatory ecosystem developing around Bitcoin and other currencies, the more other types of investors are going to be comfortable coming in, that‘s going to bring liquidity, that’s going to reduce the volatility.”“So I guess if there was one thing I were watching first, it would be seeing more regulatory certainty,” Patterson said, adding, “I'm not sure when thats going to come in the U.S.”
Patterson also said that she doesn‘t look at Bitcoin as an “alternative currency” but rather as digital gold. “If anything, it’s an alternative to gold or digital gold. I think that would be the better comparison,” she said. Patterson said that many investors have been looking to Bitcoin over concerns about inflation triggered by central bank money printing. However, for Bridgewater, Bitcoin still needs to prove its status as digital gold:
“As institutional investors, we don't know yet if it‘s going to be digital gold, it may be over time, but I don’t think we can say that with confidence yet. And that affects whether or not our client should own it.”
Related News
ETH Miners Will Have Little Choice Once Ethereum 2.0 Launches With PoS
As NFT space flourishes, CryptoBonds are gaining momentum
Tokenization of assets is not taking off, but it really should
Black Americans are changing the face of crypto and blockchain through education
Institutional adoption underscores urgency of clear crypto rules, says Hester Peirce
Thai SEC schedules hearings to address crypto investor qualifications
Loading
Editors Choice
Advertise with us
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
0.00