The CEO and founder of Gatecoin, the Bitcoin and Ethereum token exchange, was interviewed on Bloomberg Daybreak Asia regarding Bitcoin price and the cause of the recent price increase.
Factors for Bitcoin price increase
Aurélien Menant stated that he sees Bitcoin price reaching new highs at $5,000 this year.
The causes include lack of stability in other markets, institutional investors like hedge funds, as well as the ‘safe haven’ nature of Bitcoin as an investment.
Menant said:
“Uncertainties in other markets are driving more and more interest in Bitcoin. Another factor that is very important is the arrival of more and more institutional investors.”
Menant went on to share how the nature of Bitcoin as a ‘safe haven’ investment equivalent to gold is driving greater levels of investment in the cryptocurrency.
Regulations in China
Menant also said that he does expect greater levels of regulation from world governments, as Bitcoin comes more and more into the mainstream.
He said:
“China is catching up with Japan and the US who have already regulated Bitcoin, and as a transactional value it is becoming more and more important, currently with a $70 bln market cap, so obviously you need to have some rules in place to prevent money laundering. So to me, it’s a natural and rather good thing.”
Cash crises and access play a key role
Aurélien also commented that the current state of unrest with many other currencies is driving the public into cryptocurrencies. The very nature of Bitcoin being privately held creates a system where Bitcoin cannot be seized.
Unlike other currencies (Bolivars for example), Bitcoin is not controlled by central banks, and cannot, therefore, be manipulated by governments. Menant concluded by agreeing that the ‘safe haven’ nature of Bitcoin is further fueling the price growth.
The full interview can be accessed here.