CEO of the Kraken crypto exchange spoke about investments in BTC and ETH
Kraken's Jesse Powell believes bitcoin has great upside despite volatility
The cryptocurrency is under scrutiny from institutional investors. The recent gains in prices and market capitalization, according to Powell, are associated with the growing adoption of bitcoin, as well as inflation of fiat currencies and the recognition of bitcoin as a reserve asset.
Despite the volatility, BTC has indicators of a good asset to store value. It is predictable, has a limited emission, which means it is even more valuable than gold. Therefore, it is not surprising that large companies are investing part of their reserves in cryptocurrency.
When asked about the volatility, the CEO of the Kraken crypto exchange replied that he did not believe that in the near foreseeable future, Bitcoin would be able to say goodbye to this quality.
The price of a cryptocurrency can range from $20,000 to $1,000,000. Volatility can only disappear if large institutions use BTC so actively that it can compete with other asset classes.
For Ethereum, Powell highlighted the rapid growth of the DeFi sector from $1 billion to $15 billion throughout 2020. Many projects have become an important part of the Ethereum ecosystem.
The decentralized economy will continue to grow in 2021. Therefore, if you are not investing in ETH and BTC now, then you will bite your elbows.