Bitcoin must be part of any portfolio: Former president of the NYSE

Bitcoin has hit the mainstream. Former president of the New York Stock Exchange, Thomas Farley has said during an interview on Squawk Box that Bitcoin is “trustworthy, censorship resistant, it will only ever be 21 million, and it has to be part of a portfolio.”

Farley is an American banker, and the current CEO of Far Point Acquisition Corp. He said:

“When Bitcoin was at $60,000, you had a lot of institutions on the sidelines looking and saying, ‘boy, we’d like to invest. We want to allocate 1% to 3% of our portfolios, pension funds, for example, but it’s $60,000 . It feels toppy, it’s a little mania.’ But they’ve done their due diligence. They’ve met with their investment committees. And then, when it went down to $17,000, it wasn’t a shock to me that you saw some of these institutions step in for the very first time to buy Bitcoin for their portfolio. »

Bitcoin volatility

When challenged about Bitcoin’s volatility, Farley said it was “a moment of capitulation.”

“I think it’s a combination of some really smart Bitcoin whales that have been in it for 10 years and then pretty quickly, some of those institutions stepping in, that’s exactly what’s happened. Bitcoin is up 40%. It doesn’t mean it’s going to go up another 40%. But in crypto, there’s Bitcoin. And then there’s literally everything else. Bitcoin is trusted. it’s pretty much censorship-proof. There will only ever be 21 million Bitcoins. It will have to be a component and a portfolio of broad portfolios, like a pension fund. Maybe only to a small extent, but it has to be there.”

After declaring his support for BTC, Farley gave his views on all the other coins. “Then there are all other cryptocurrencies. Ethereum is in a special class of its own. Then there are stablecoins, and everything else looks like a speculative stock. Maybe if you invest in it, you’ll make money, maybe you’ll lose all your money.”

While Farley has been a strong supporter of Bitcoin, he tempers this opinion with the occasional caveat.

“Bitcoin is a store of value, but the price swings are much, much higher than other stores of value. Yes, the upside potential of holding BTC is high. But so is the downside. The word ‘to the moon’ is dangerous.”