'You can buy Bitcoin for as little as R10'
In November, Bitcoin was trading at just over $15 000.
On Sunday, on the cryptocurrency’s 12th “birthday” – it hit $34 8000 – a new all-time record.
We’ve been here before, and for some this latest rally will trigger a few bad memories.
In 2017, it soared from $1000 to $19 000 before tumbling again to $4000 by the end of 2018.
This time is different, according to many cryptocurrency believers.
They claim the latest surge may be caused by investors protecting themselves against inflation as central banks deal with Covid-19’s economic fallout by print money like there’s no tomorrow.
In fact, about $3 trillion were created since the beginning of Covid-19, some of it finding its way to Bitcoin.
Multinational investment bank JP Morgan says Bitcoin may reach $100 000 by year-end.
Citibank is even more bullish – the gargantuan bank says $300 000 is a realistic possibility.
Refilwe Moloto interviewed Farzan Ehsani, formerly the Blockchain Lead at RMB and now the co-founder and CEO of VALR.com, a crypto trading platform.
At 11:48 AM, Bitcoin was trading at $31 816 (R472 356).
This has been expected for quite some time… A lot of mainstream commentators were talking about the death of Bitcoin. But people in the Bitcoin space have seen this before…Farzan Ehsani, CEO - VALR.com
You can buy Bitcoin for as little as R10.Farzan Ehsani, CEO - VALR.com
Over the last month, it’s up 67%. Over the last year, it’s up 293%. These are dizzying numbers!Farzan Ehsani, CEO - VALR.com
Because Bitcoin is a scarce asset – there’s a limited supply, and central banks can’t create more of it – a lot of people invest in Bitcoin as a safe haven… institutions are now entering Bitcoin… to hold on their balance sheets…Farzan Ehsani, CEO - VALR.com
Traditionally, gold has been a safe haven… but there’s about $9 billion that’s been leaving gold ETFs. About $3 billion of that has gone into Bitcoin…Farzan Ehsani, CEO - VALR.com
All gold that is mined in the world is worth about $10 trillion to $12 trillion. All Bitcoin is worth about $500 billion… If all Bitcoins were equal in value to all gold in the world, then you’re looking at a 20-times increase from here…Farzan Ehsani, CEO - VALR.com
Listen to the interview in the audio below.
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