Gold has been the global store of value for thousands of years, but one cryptocurrency-focused venture capitalist thinks bitcoin will eventually capture that mantle.
Lou Kerner, co-founder of CryptoOracle, which provides cryptocurrency advisory services and operates a venture fund focusing on decentralized technologies, believes bitcoin offers something “much, much better” and will take gold’s place as the top store of value, he noted on a recent CNBC interview.
It may take as long as five years or more, but Kerner said he expects people using gold as a store of value to switch to bitcoin.
Kerner’s views about bitcoin’s attributes are amongthe reasons being cited by cryptocurrency enthusiasts, who maintain the cryptocurrency’s future is bright despite the price decline that has occurred. The interviewer noted that Brian Kelly, another cryptocurrency fund operator who is also a CNBC contributor, recently said the “nervous money” could be exiting bitcoin – those who recently purchased it but can’t handle the volatility.
Kelly, founder of BKCM and a contributor to CNBC’s Fast Money, said in May that the adoption of cryptocurrency by financial institutions like the New York Stock Exchange and Goldman Sachs would cause the cryptocurrency market to surge in the short- to mid-term. When bitcoin’s price surpassed $8,000 in late July, Kelly said the rally would be long-lasting, which proved incorrect.
Asked if he agrees with Kelly about “nervous money” leaving the cryptocurrency market and if such a development is healthy, Kerner said volatility is to be expected for a new asset. He said new assets have come such as junk bonds 40 years ago which were also very volatile.
“Forty years later, it’s the same as everything else,” Kerner said of junk bonds. “We think bitcoin is just going along that same structure.” Any new asset in its early days is extremely volatile, he said.
“Nobody knows how to price it, and that’s exactly what we’re seeing with bitcoin,” he said.
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Last modified: August 23, 2018 06:46 UTC