Travis Kling, the Founder of crypto-focused Ikigai Fund and former equity portfolio manager, talked about the utility of Bitcoin. He also hinted that other payment cryptocurrencies might not hold value.
Kling, like many, was an early skeptic of Bitcoin. However, he converted into a Bitcoin maximalist soon enough. He reiterated the fact that Bitcoin doesn’t need to be a sound payment system because no likes to spend their Bitcoins. He said,
“Bitcoin is too good at being a store of value right now to be a good method of exchange, nobody wants to be the Bitcoin Pizza guy that spent 10k Bitcoin on a pizza,”
According to him, while gold is rare, “Bitcoin has even more provable scarcity than gold.”
The price of Bitcoin [BTC] at 5: 00 Hours UTC on 14th September 2019 is $10,300. It is trading at par on a daily scale. The global economic turmoil and exodus of altcoins have both attributed to the rise of Bitcoin this year.
ECB announced a rate cut recently which has now taken the Eurozone in yielding negative returns. The national US debt has also increased to $22.5. Mati Greenspan, the senior market analyst at eToro noted in a daily update,
This is kind of a big deal because pretty much the entire global economy is sitting on top of US debt and if they were to default on any payments it could directly result in a breakdown of the global economy and with it social order.
The dominance of Bitcoin [BTC] has also risen above 70%. The altcoins have all suffered due to the rising disproportionality. Moreover, Kling also hinted that these payment tokens might not have much utility because of the “really great exchange of system right now.” Venmo in the US and similarly Wechat and Alipay in China are leading the payments space efficiently.
Travis is concerned more about the backing of these projects in FIAT, on how these will shape in the future is uncertain. Nevertheless, Bitcoin’s evolution as a store of value in the current economic environment must be used to hedge one’s wealth. He said,
“[Bitcoin is] the most significant investment opportunity of a generation.” He also added, “This technology was the most important innovation since the internet.”
Do you think that altcoin would benefit from the demise of FIAT as well? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com