According to the co-founder of DataTrek Research, the current global instability makes Bitcoin a popular safe-haven asset. Nicolas Cole believes that the price volatility of this leading crypto asset can serve as an indicator of other market and global events.
He also believes that bitcoin is relatively immature compared to traditional asset classes, which means that the volatility of synonymous words that have become encrypted assets seems to continue.
Cole: The growing dominance of Bitcoin makes it the "standard for all cryptocurrencies"
Earlier today, the co-founder of financial research and analysis firm DataTrek research said in an interview with CNBC that bitcoin is a convenient tool for capital to escape the turbulent economy.
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Nicolas Cole believes that the current global economic situation is beginning to resemble the situation when Bitcoin was born in 2008-09. His reason is that it was born in "turmoil."
The researchers then commented on the global nature of this cryptographic asset, arguing that its convenience may make it a safer port than other options.
Cole turned his attention to the growing dominance of Bitcoin over other encryption markets, he said:
“In the past year or a year and a half, Bitcoin has become the standard for all cryptocurrencies.”
Bitcoin has been steadily rising relative to other cryptocurrencies since it dominated the market in 2018. Bitcoin currently accounts for 68+% of the total market value of cryptocurrency, compared with only one-third at the beginning of last year.
Cole speculates why this is the case:
“Many fraudulent currencies have died out, and bitcoin still exists.”
Asked if Bitcoin and other crypto assets could be used as indicators of other market changes, the research expert replied:
"We definitely saw this."
Cole claims that Bitcoin is one of the few "predicted" assets:
"Without Bitcoin, nothing really moves forward."
He also said that the collapse of many newcomers into the industry, similar to the early 2018 crash, will certainly happen again and cannot be avoided . Compared with other asset classes, the market is relatively immature, so at this point, it is unreasonable to expect prices to perform:
"It's important to understand all the cryptocurrencies… they are always very unstable. It's still a very young technology, a very young safe-haven asset. It won't be as stable as gold or bonds."