Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.
Strategist at Southeast Asia’s largest bank DBS says Bitcoin is unique regardless of price – Featured Bitcoin News
An investment strategist at Southeast Asia’s biggest bank, DBS, says bitcoin is unique whether the price changes or not. “If we just look on a price basis, you’re going to see a lot of volatility, and that doesn’t tell you much about what benefits it actually provides,” the DBS strategist stressed.
DBS strategist on Bitcoin’s uniqueness
DBS investment strategist Daryl Ho spoke about bitcoin in a recent media briefing, Finews Asia reported on Friday. He explained, “If we just look purely on a price basis, you’re going to see a lot of volatility, and that doesn’t inform you much about what benefits it actually provides,” elaborating:
I think bitcoin is still unique whether the price changes or not.
Ho went on to point out that bitcoin’s uniqueness is not driven by its price, but rather the utility that allows value transfers in a decentralized manner without the need for a central counterparty to clear the trade, the publication conveyed.
“Most of the methods by which you trade assets require a central clearing party to verify the trade,” Ho detailed, adding that bitcoin offers an opportunity that fiat money does not offer. “Because fiat money systems are still controlled by central banks,” the strategist stressed, noting that bitcoin’s 13-year track record further boosts confidence in the cryptocurrency.
“If you held certain rationed assets at the beginning of February, you may not have been able to liquidate them at will because sometimes the exchanges were closed,” he continued, stressing:
But the bitcoin market was open 24/7. So it was an opportunity for you to raise money and liquidity, if needed. Before bitcoin, there was never any way that could do this.
DBS launched a digital asset exchange in December 2020. The platform supports trading of four cryptocurrencies: bitcoin, bitcoin cash, ether and XRP. In August, the bank revealed that trading volume on its digital asset exchange increased, noting that “Investors who believe in the long-term prospects of digital assets are gravitating towards trusted and regulated platforms to access the digital asset market.” Last month, DBS rolled out self-managed crypto trading via its Digibank app.
Piyush Gupta, CEO of DBS Bank Group, said in March that he does not believe cryptocurrency will become money, but stated that “it can be an alternative to gold and its value.” The bank also recently entered the metaverse by partnering with The Sandbox.
What do you think of the DBS investment strategist’s comments on bitcoin? Let us know in the comments section below.
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