With the current Bitcoin rally continuing to make headlines, drawing the attention of several large institutional investors and financial regulators, Nexo’s co-founder has called the digital asset a better version of Gold.
In a recent interview with Bloomberg, Antoni Trenchev, the co-founder and managing director of Nexo, said that bitcoin has proven to be “the best performing asset on any significant timeline.”
He said that although bitcoin is often compared to Gold due to their very similar characteristics like “scarcity, a fixed finite amount,” bitcoin is a better version of Gold.
He acknowledged that while most transactions conducted with fiat currencies are done digitally, cryptocurrencies, especially bitcoin, offer something much better.
He pointed to the money printing spree on which central banks worldwide have embarked, stating that bitcoin serves as a hedge against inflation.
“What sets apart bitcoin is the fact that precisely your central bank can not print it at will, and this is something that we’ve seen being done on a massive scale last year; close to a trillion dollars have been printed, and you can feel the creeping inflation.”
Therefore, with the rate of inflation increasing, many people are searching for an alternative, and bitcoin is that much-needed alternative.
Trenchev’s words call to mind a statement made by Tyler Winklevoss, the co-founder of Gemini, earlier in 2020. He said that bitcoin is the only vaccine for the money printing disease which global central banks are suffering from.
Possible Bitcoin Correction
Trenchev is certain that the chances of a bitcoin correction are very high. But he is also optimistic that it will not affect bitcoin in the long term.
He said, ” We could very well see a bitcoin correction of 50%, and that wouldn’t have an effect on the long-term bull market of bitcoin.”
However, he cautioned that although it is advisable to have a percentage of bitcoin because of its potential, it will not be a good idea to invest more than necessary since bitcoin is highly volatile.
Conclusively, Trenchev predicted that Bitcoin might continue on its current bull run, with the next stop being $75,000. But, he added that it would ultimately head to $100,000 in the coming year.
He said, ” I think that we are accelerating towards $75,000… Ultimately, I think we’re going to go much, much higher. A $100k is very realistic in the next 12-18 months, but it’s not going to be as smooth a ride as my last year’s prediction simply because a lot of people are calling it right now, and the markets never do what everyone is expecting them, so, caution again.”
Bitcoin has far exceeded the expectations of critics and is still not done. Will bitcoin finally make it to $100k? Only time will tell.
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Author: Obike Favour