Morgan Creek Boss Downplays Impact on Negative Headlines on Bitcoin Hodlers
Last week was supposed to be a record-setting one for Bitcoin, but the momentum of the digital asset ran into a brick wall and its value plummeted. However, Moran Creek Capital Management’s President, Mark Yusko was not fazed by the negative headlines about the sudden turn of events. In fact, the investment firm’s head took to Twitter to bash the recent negative press that Bitcoin had gotten. According to the investment expert, the negative headlines were nothing but ploys of the traditional finance space because they were just trying to slow down the cryptocurrency’s adoption.
According to Yusko, incumbents have always tried to use whatever power is at their disposal for creating hurdles in the adoption of innovative technologies. Whether it is media attention or government regulation, the traditional space can use a variety of tactics. However, he went on to say that this strategy had never worked and it was likely that it wouldn’t work this time either. The CEO also went on to say that repression tactics were only going to deter speculators from relying on the asset. He believes that real investors are aware that Bitcoin has significant value to offer and they would be ready to stick to the asset in the long run.
He said that there is a fundamental value associated with every asset, which depends on metrics that are related to the asset and a price that depends on the level where 2 people willing to exchange some quantity of the said asset in real-time. According to him, speculators are focused on price as they are only in it for the short-term, whereas investors are in it for the long-term, so they focus more on value. Yusko has been a Bitcoin support for a long time, as opposed to the traditional financial system. Speaking to CNBC: Fast Money last May, he had said that Bitcoin was a much better investment as compared to the stocks that were part of the S&P500 index.
He has taken matters further this year and blamed the US dollar for exposing investors, which has worked in favor of Bitcoin. Speaking to CNBC earlier this week, he said that ‘zombie companies’ that require assistance during times of crisis have pressurized the Federal Reserve significantly. As the companies are unable to pay their debts, the Fed has had no other choice, but to devalue the greenback. This has prompted investors to dump the US dollar and Yusko said that this trend was likely to continue if the pandemic cannot be controlled by the government soon enough.
As per Yusko, there will be a mass exodus from cash in the US and this would benefit Bitcoin even more. Even though he appears to be resolute despite the FUD, it should be noted that Bitcoin is still at risk. It was expected to break its all-time high this week, as it reached $19,300. But, there has been a huge pullback in the currency and it has been struggling to stay above the $17,000 threshold since Thursday.
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