Bitcoin has experienced roller coaster volatility in the past few weeks.
But this did not affect Circle CEO Jeremy Allaire, who assured cryptocurrency enthusiasts that Bitcoin is still a "very attractive" security barrier against global economic uncertainty.
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Last week, US President Donald Trump announced that it would impose a new tariff of $300 billion on several new products from China. After that, bitcoin prices jumped to $11,700. At the same time, signs of a downturn in the stock market seem to reinforce the view that more and more people may consider bitcoin as digital gold in order to protect their wealth during times of economic crisis.
Since then, bitcoin prices have fallen slightly as people’s worries about trade wars have subsided.
However, despite several ups and downs, Allaire still believes that Bitcoin is a safe haven:
“Obviously, non-sovereign digital assets like Bitcoin are attractive to those who are interested in controlling their own money.”
“This represents a long-standing interest. This is the digital gold theory, which I think is mainly applicable to institutional and personal Bitcoin buyers, especially in jurisdictions or environments where capital controls are relatively strict. This is a potential Theory, I think it has had an impact in the past 8 years."
One suggestion for recent market volatility is that traders hope to cash out after a steady rise.
“Many investors with more diversified portfolios have been hit. Clearly, Bitcoin has risen more than 100% in the past nine months or so, almost 200%, which is profitable. The difference in types, you will see that their performance during these market fluctuations is slightly different."
In recent months, with Facebook and Libra entering the field, the cryptocurrency industry has received a new round of attention, which means that legislators and regulators have rekindled interest. At a recent hearing of the Senate Finance Committee, Allaire talked about the current financial system and believed that it could not meet people's daily funding needs. He said at the time that if blockchain technology could develop "responsibly", it could meet this challenge.
Allaire's company Circle has obtained currency transfer licenses in approximately 48 states, including the strict BitLicense in New York. Allaire said that many companies are trying to meet compliance requirements and do the right thing, but one major problem is that the law has not been updated to meet current conditions.
However, Allaire said in an interview with CNBC today that he believes that governments around the world are now paying closer attention to this issue, especially the G-7 including Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
“The cryptocurrency has definitely been put on the agenda of regulators. It has become an important topic not only because of the continued development of currencies such as Bitcoin, but also because of the development of stable currencies such as USDC and Libra.”