Why Bitcoin is still a big opportunity according to DBS Bank

Singaporean financial services firm DBS Bank believes that Bitcoin remains an outstanding opportunity despite concerns about the high volatility of the crypto market.

During a recent media briefing, DBS stated that Bitcoin’s ability to process continuous transactions without needing a central counterparty for clearing makes it an unprecedented opportunity in history.

DBS Exec: Bitcoin is powered by the utility

The bank’s investment strategist and senior vice president (SVP), Daryl Ho, noted that Bitcoin is rather driven by utility, which enables the transfer of value through decentralization, thereby eliminating the need for central parties.

“Most of the methods you trade assets require a central clearing party to verify the trade. So there’s still a possibility that fiat money can’t be bought because fiat money systems are still controlled by central banks,” he said.

The investment strategist further explained with an illustration of people who had certain rationed assets in their possession in February but could not liquidate them at will because exchanges were closed at one point. In contrast, the bitcoin market is open 24/7 and will enable them to obtain money and liquidity at any time.

Ho also noted that Bitcoin’s volatility does not affect its uniqueness and benefits

“I think bitcoin is still unique whether the price changes or not. If we just look at the price basis, you’re going to see a lot of volatility, and that doesn’t tell you much about what benefits it actually provides,” he added.

DBS records high BTC trading volume despite downtrend

Despite the current downtrends in the crypto market, DBS has experienced growth in its crypto-related activities.

In June, the bank’s digital asset arm, DBS Digital Exchange (DDEx), recorded a significant increase in bitcoin trading volume despite the market crash and Terra-Luna collapse in April and May respectively.

The exchange revealed that it institutional customers was not concerned about the crash; instead, they were busy buying bitcoin at cheaper prices. According to DDEx, BTC trading volume recorded in June was four times higher than April.