Circle CEO Jeremy Allaire says in a complex geopolitical environment, bitcoin is an asset that investors should have some exposure to. He emphasized that “digital commodities are here to stay,” noting that bitcoin is the largest digital commodity asset. The executive also believes that stablecoins will be “explosive in terms of its growth in the coming years.”
‘Digital Commodities Are Here to Stay’
The CEO of crypto firm Circle, Jeremy Allaire, shared his bitcoin outlook in an interview with CNBC earlier this week. “Digital commodities are here to stay,” the executive began, emphasizing that “Bitcoin is the largest digital commodity asset.” He opined:
In a complex geopolitical environment, a complex macroeconomic environment, this is an asset that you should have some exposure to.
Allaire explained that many people who invest in bitcoin believe that the cryptocurrency “is a risk hedge asset.” He added that BTC “can be correlated to the availability of money supply but also can be uncorrelated,” noting that “It doesn’t fit every box, clearly.”
The Circle executive also provided his outlook for stablecoins. Circle is the issuer of U.S. dollar-based stablecoin USDC. Allaire stated that dollar-based stablecoins can be a strong store of value and a medium of exchange that has all the power of the internet. Noting that stablecoins are a huge innovation, he opined: “I expect it to be explosive in terms of its growth in the coming years.”
Many others believe that bitcoin is a risk hedge asset. Venture capitalist Tim Draper previously explained that he is bullish about bitcoin because “it’s a great hedge against inflation.” Famed hedge fund manager Paul Tudor Jones has said several times that bitcoin is his preferred inflation hedge over gold.
Blackrock CEO Larry Fink detailed in July that bitcoin can hedge against inflation and “the onerous problems of any one country, or the devaluation of your currency, whatever country you are in.” Blackrock, the world’s largest asset manager, is currently seeking approval from the U.S. Securities and Exchange Commission (SEC) to launch a spot bitcoin exchange-traded fund (ETF).
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