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“How do you explain that you have no bitcoins?” – the head of Kraken

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“How do you explain that you have no bitcoins?” – the head of Kraken
CONTENT

  • Kraken CEO speaks with Bloomberg Surveillance about Bitcoin and Ethereum

  • He believes bitcoin will rise but remain volatile

  • Kraken’s daily trading volumes are nearly $ 1.5 billion

International consortium of news organizations developing transparency standards.

The CEO of the Kraken cryptocurrency exchange commented in an interview with Bloomberg Surveillance on the growing interest of corporate investors in bitcoin.

Jesse Powell, Co-Founder and CEO of Cryptocurrency Exchange Kraken, spoke with Bloomberg Surveillance Host Guy Johnson on a wide range of topics relevant to the crypto space..

Mass adoption trend

In particular, Powell discussed with Johnson the growing trend in the mass adoption of bitcoin. However, he did not begin to show originality in this matter and linked it with well-known factors. Powell, like many participants in the cryptoindustry, believes that the main driver of the current growth of bitcoin is the increased interest in it as a reserve asset and a hedging tool against inflationary risks..

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“The total supply of bitcoin is finite, known, and this makes it a more efficient store of value than gold,” he said..

Commenting on the potential correlation between BTC and tech stocks this year, Powell noted:

“Both of these assets are in high demand right now and both are responding to aggressive printing of fiat money.”.    

However, he added that he does not believe there is a direct correlation between the growth of these two asset classes. They are just equally actively attracting investors now who are looking for ways to protect their capital..

As more well-known companies start investing some of their reserves in bitcoin as part of diversification strategies, the world’s main cryptocurrency is gaining more mainstream attention..

However, Powell does not think this trend will lead to a sustained decline in market volatility over the long term. In his opinion, the MTC rate can rush anywhere, “from $ 20,000 to $ 1 million.” Moreover, if institutions continue to take over the Bitcoin market more and more, it will turn it into a serious competitor to other asset classes. In this case, volatility at first can only increase, says Powell, and only then will it go into a tangible decline..

Not only bitcoin

At the same time, Powell emphasized that he is optimistic not only in relation to bitcoin. He also noted the bright prospects for Ethereum. This is largely due to the boom in 2020 in the decentralized finance (DeFi) segment. If at the beginning of the year the total dollar value of all assets locked in DeFi protocols (TVL) did not reach $ 1 billion, then by the end of the year it reached $ 15 billion.

“The DeFi story is becoming an increasingly important part of the entire Ethereum ecosystem,” Powell said. A growing number of DeFi applications are emerging that enable users to make financial transactions without third-party intervention. This will support the continued growth and development of the decentralized economy.

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