Morgan Creek Capital CEO mark Yusko believes that it is not worth paying attention to short-term fluctuations in bitcoin. It is better to focus on a long-term strategy.
“If bitcoin falls, you should buy it to improve your financial portfolio,” he says.
During an interview with CNBC in the series Fast Money (“Fast money”) he noted that bitcoin will continue to grow during 2020.
“It has fundamental indicators that are constantly improving: acceptance is growing, the number of wallets is increasing, as is the number of transactions,” he says.
In General, all the fundamental factors continue to strengthen, and the really interesting time will be after the next halving, which will take place in may this year. The issue of bitcoin will be halved, which may signal a decrease in sales of the cryptocurrency by miners. USCO believes that this will necessarily affect pricing.
Since the beginning of this year, bitcoin shows growth of more than 50%, and in the second half of the year, the figures may be even higher.
“We will see a lot of hype similar to what it was in 2017,” says the CEO of Morgan Creek Capital.
After halving the reward for block mining when mining bitcoin, the ratio of “stocks to inflows” (stock-to-flow) will improve and will be even more profitable than gold. Yusko believes that because of this, bitcoin will become a digital form of gold and a net store of value.
He was asked if such a model provides the fundamental value of bitcoin, to which he replied:
“His trump card is the opportunity to be a means of accumulation. Bitcoin is an alternative to Visa or Mastercard, and with the help of the Lightning Network, its bandwidth will become significantly greater.”
The bitcoin system is the most secure and powerful computer network in the world. As the veteran hedge Fund notes, such a currency can be a safe haven that we will use to diversify our investment portfolio.
Talking about macroeconomic factors and their impact on the digital asset, he said that the decline in interest rates around the world is extremely optimistic for bitcoin and contributes to the bullish movement.
“In the world of Central banks, bitcoin manages the situation. Around the world, rates are close to zero, even in the US and China, ” he says.
According to USKO, this phenomenon is associated with demographics, deflation and too high debt loads. In modern reality, this is the only choice.
“You can’t pay the debt or reset it. The currency is devalued, and Central banks print it. All this has a positive effect on bitcoin, ” he said.