2021-11-24 21:46 |
Jason Guthrie, the Head of Digital Assets at WisdomTree, believes Bitcoin (BTC/USD) has inflation-resistant traits. He shared his sentiments while discussing the long and short-term growth trajectories during an interview on November 22. He added that BTC has the characteristics of a store of value, hence its comparison to gold.
According to Guthrie, BTC belongs to a nascent asset class, and its classification is still unclear. However, he believes the flagship cryptocurrency’s growth trajectory is quite notable. He pointed out that BTC’s growth trajectory went from non-existence 11 years ago to its current level.
Explaining what he thinks BTC is worth, Guthrie said its pricing is similar to any other asset. As such, it is worth what anyone is willing to pay for it. According to him, factors such as demand and scarcity determine BTC’s price.
From a holistic point of view, he believes BTC’s price should be based on the value that its network offers its users. With more investors warming up to BTC, Guthrie believes BTC’s value will continue growing. He, however, admitted that it is hard to specify BTC’s price target at the moment.
Investors should consider adding BTC to their portfoliosGuthrie noted that it makes sense for long-term investors to get some exposure to BTC and the crypto space as a whole. He maintains that the nascent sector will continue growing in the long term as the amount of value locked in crypto networks increases.
While he believes the long-term trajectory of the BTC market is going in one direction, he advised investors to invest an amount they are comfortable with.
He added that he tries not to read into the short-term price movement of BTC, seeing as the market is relatively volatile. As such, he claims that it is difficult to tell whether entering the BTC market at its current level is ideal, especially for short-term investors.
This news comes as BTC continues bleeding. At the time of writing, the leading crypto by market capitalization is changing hands at $56,134.10 (£41,938.63) after losing 2.24% in the day and 7.55% over the past seven days. BTC’s current price represents an 18.65% drop from its November 10 ATH of $68,789.63 (£51,373.82).
According to analysts, BTC’s slump is due to the strengthening US dollar index and President Joe Biden signing the US infrastructure bill into law. It is also worth noting that investors might the cashing out ahead of the festive season.
The post WisdomTree’s Jason Guthrie says BTC has the traits of an inflation hedge appeared first on Invezz.
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