As mainstream interest in Bitcoin grows, Circle CEO Jeremy Allaire believes it remains an attractive asset for those seeking a hedge against global economic uncertainty.
The price of Bitcoin has rallied more than 150% this year, making it one of the best-performing global assets. Circle CEO Jeremy Allaire believes the cryptocurrency’s rise is largely a result of many investors turning to the asset as a vehicle for storing value amid global economic uncertainty.
In a recent CNBC interview, the Circle CEO sought to differentiate between Bitcoin’s value to the global investor community and the allure of stablecoins such as USDC, which his company pioneers. Jeremy Allaire, in response, noted that USDC caters to the “huge utility and appetite for dollars on the internet.”
According to him, there would be explosive growth in terms of stablecoin adoption in the coming years. However, their success would not impede the demand for BTC, which serves a different use case.
Jeremy Allaire noted that Bitcoin is more attractive to “people who want a currency or store of value hedge against the world going to hell.”
In an earlier part of the interview, the Circle CEO also explained why Bitcoin is an exciting addition to an investment portfolio and has already garnered support from major players in the traditional financial world.
"Digital commodities are here to stay," says @Circle CEO @jerallaire
on #crypto. "In the minds of many, #Bitcoin is a risk-hedge asset. In a complex geopolitical environment, this is an asset that you should have some exposure to." pic.twitter.com/rcbWjnUvSI— Squawk Box (@SquawkCNBC) December 12, 2023
Bitcoin Ideal In a Complex Investment Environment
Explaining Bitcoin’s appeal, the Circle CEO noted that BTC is a risk-hedge asset in the minds of its many holders globally. He admitted that it could be correlated or uncorrelated with available money supply, noting that it “doesn’t fit every box clearly.”
Jeremy Allaire alluded to recent favorable comments about BTC by multi-billionaire hedge fund manager Ray Dalio and Blackrock CEO Larry Fink. They “believe that in a complex geo-political and complex macroeconomic environment, this is an asset people should have exposure to,” the Circle CEO said in agreement.
Overall, Bitcoin has had a year to remember, surging above $40,000 for the first time in more than a year. While the cryptocurrency has dropped slightly in the past 48 hours, market sentiment remains bullish, mainly ahead of a potential approval for Bitcoin ETFs in the United States.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
-Advertisement-
