Bitcoin

Meltem Demirors says that “if you keep your Bitcoin in a financial institution, Bitcoin is not a hedge system code.”

Meltem Demirors, CoinShares’ chief strategy officer, shared their views on how The recent crisis in the oil market will have an impact im constantly changing Bitcoin stories.

The narratives change

According to Demirors the recent drop in oil prices It is a crucial moment for this will forever change the narratives in the investment world. As he emphasizes, the crisis triggered by COVID-19 “has exceeded all our expectations of the normal”, so it is “absurd” to wait for the status quo to return.

“We not only see a revaluation of the oil price, but also a review of the entire energy value chain.”

After that, Demirors says that Geopolitical interests will increasingly shift from access to energy to “computers and connectivity”.. As an example of this change, he also speaks about China’s efforts to “win the digital race”. The instability in traditional markets is also changing the concept of risk, which is likely to work in favor of Bitcoin.

“With zero interest rate, there are really no low-risk fixed-income assets that are stable.”

Meltem Demirors says that “if you keep your Bitcoin in a financial institution, Bitcoin is not a hedge system code.”
Meltem Demirors says that “if you keep your Bitcoin in a financial institution, Bitcoin is not a hedge system code.”

According to Demirors Investor interest is increasingly shifting to high-risk, high-return assets such as Bitcoin. People’s attitudes towards volatility are also changing. Given that traditionally non-volatile assets have had large price fluctuations, Bitcoin’s volatility is no longer considered abnormal, and investors’ prospects will change accordingly.

Existential threats

Demirors also noted that there are still a number of existential threats to Bitcoin. While Most Bitcoin holders are dependent on Financial institutions like Stock exchanges and custodian banks, Your fortune still can be frozen or exploited by the government.

“There are many people who try to sell this story about Bitcoin as a protection system when they actually take their Bitcoin and put it back in the financial system, which effectively negates that kind of argument.”

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