As investors are looking for safety in cash, can bitcoin (BTC) become more attractive than cash? How low might BTC go and how long will this downturn last? What to watch for before making an investment decision in the nearest future? What can we expect from institutional investors and what are the long term perspectives for bitcoin?
We asked industry players to share their insights on this. Here's what they said.
Bitcoin vs cash
Despite cash is now emotionally more comfortable than bitcoin, it may not be so safe after all, said Guardian Circle CEO/Co-founder Mark Jeffrey.
"The U.S. government injected USD 1.5 trillion into the system yesterday — and the stock market recovered slightly for half an hour before dunking even lower. Think about that: the market shrugged! And the monetary base was inflated significantly, ultimately diluting all dollars everywhere. This will keep happening in larger and larger amounts," he stressed, adding that once people see inflation hitting "THEN they will stampede towards gold and bitcoin."
"But bitcoin, being digital, is easier to own and manage, so I expect it will eventually win out over gold," he said.
Meanwhile, Johnson Xu, Chief Analyst at TokenInsight, a token data and rating agency, told Cryptonews.com that the question is not whether BTC is better than cash or not, because these are "two different kinds of assets for drastically different purposes, although some industry players believe bitcoin will replace cash/fiat system, it won’t be an easy task and is impossible to realise in the near term."
Bitcoin being better is also not the reason why institutional investors are investing in bitcoin, "but because they believe bitcoin might deliver a significant return in the future or for diversification purpose."
"Institutional investors have complex needs, thus it is not an easy task to uncover the specific needs of each institutional investor in order to attract them to the industry," said the analyst.
