Author: Davis Johnson
Earlier this month, the FASB (Financial Accounting Services Board) deliberated on adopting a fair value accounting standard for cryptocurrency assets.
This move, as many believe, will aid the general adoption of Bitcoin by making the currency more attractive for business institutions to hold.
In response, Bloomberg Intelligence’s senior commodity strategist, Mike McGlone, publicized his outlook on what he believes may well be the future of the original cryptocurrency, Bitcoin.
This post will look at the financial expert’s anticipations for the new age of global currency!
Bloomberg Strategist Talks About Bitcoin Entering An Unstoppable Maturation Phase And Says The Price Should Continue To Rise.
Unstoppable Maturation Phase
Citing increased adoption, rising demand, and increasing regulations, Mike McGlone, Senior Commodity Strategist, Bloomberg Intelligence, stated his view on the fate of the first cryptocurrency, Bitcoin.
The senior analyst predicts the coin could enter an inevitable migration phase into mainstream finance.
On top of that, he expects the cryptocurrency to undergo “an unstoppable maturation phase,” where the world would experience an unprecedented rise in the price of Bitcoin.
“Bitcoin’s simple diminishing supply is unprecedented worldwide, which means prices should continue rising unless something is capable of offsetting the current adoption and demand trends, according to the rules of demand and supply.”
The Bloomberg strategist expounded, saying: Since Bitcoin was yet to exist in October 2007, during the WTI crude oil crisis when WTI crude oil first rose to $84 per barrel, we may see the appreciation advantage of the nascent technology in complete action.
“In our rapidly growing digital world, the benchmark crypto is accruing value as a decentralized unique asset and global currency that no authority or organization holds liability,” he said.
“It only makes sense that one of the top-performing assets of the last decade drops along with the most aggressive tightening from the Federal Reserve in the past half-century,” McGlone said. “But we can only conclude this by paying attention to the rising adoption and increasing demand, and the steep relative discount point to risk/reward from the currency’s declining supply.”
“Bitcoin returning to its previous position of outperforming the majority of other assets in a matter of time, global adoption edges closer, and changes in America’s accounting standards evolve.”
Final Word
McGlone’s point is that Bitcoin is performing like a risk-off asset, such as gold because it has managed to maintain its high price level amid the Federal Reserve’s interest hike. Bitcoin, nonexistent when crude oil first rose this high, is currently valued at over $19,000.Leading Bitcoin bulls like Bill Miller and Micheal Saylor often refer to cryptocurrency as a form of “digital gold.” Besides holding a scarce supply, Bitcoin also lacks liability relationships with any state, company, nation, or organization. That said, Bitcoin behaves like a highly volatile tech stock instead of a haven asset. Now, Bitcoin is down 70% from its last November high.