Bitcoin Use Case Defended On CNBC’s Fast Money
Tuesday afternoon (ET) saw Bart Smith (Head of Digital Asset Group, Susquehanna International Group) join the panel on popular American post-market business program, CNBC’s Fast Money, to provide insight on the current investment environment surrounding Bitcoin (BTC), and cryptocurrencies, in general.
Bitcoin Bulls Excited by BTC Volatility, Volumes?
Smith informed the Fast Money panel that Bitcoin’s realized volatility (i.e., the extent to which BTC oscillated in the past), is tracking at around 70; a level that is “down from 140.”
Whilst this sizeable reduction in BTC volatility is encouraging for more risk-averse investors, the Susquehanna digital asset head cautioned that Bitcoin remains “seven times more volatile than the S&P 500.”
In addition to reduced BTC volatility, Smith highlighted that the significant pullback in crypto trading volumes could very well serve as another reason why many day-traders have begun wondering, “is this bear market petering out?”
Bitcoin’s Use Case “Valid Today”
Bitcoin (BTC) has managed to attain two value-adding use cases thus far, according to Smith, that is, it represents both digital gold and an asset that can execute cross-border money transfers far more effectively than, say, “using Western Union [or] traditional banks” – as he posits below.
With Bitcoin, I can send money. It’s fast. It’s cheap. And frankly, no one can stop me.” – Smith
On both these aforementioned use cases, Smith told CNBC’s Fast Money that “it’s hard to imagine Bitcoin losing [them] versus the field.”
Asian Retail Investors “Driving the Bus”
Fast Money panellist Dan Nathan, wondering where the next inflow of capital will come from, asked Smith whether he was seeing any increased interest from institutions not currently invested in cryptoassets.
Smith answered by explaining that Susquehanna tend to think of the world’s assets in terms of the following four pools: U.S. retail, European retail, Asian retail, and global institutional.
He then shared his belief that “there’s really only one player” out of these four asset groups that have entered into the Bitcoin and crypto space “right now,” that being the Asian retail pool.
Whilst he conceded that “there’s a little bit in the U.S.,” Smith maintained that it is nothing substantial, particularly when compared to the fervour with which Asian retail investors have embraced the emerging cryptoasset class.
— CNBC’s Fast Money (@CNBCFastMoney) July 10, 2018
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