Despite the plunging price of Bitcoin throughout November, one of the world’s leading finance bosses has urged investors not to ignore the growing influence of cryptocurrency as a future financial system.
Responding to growing criticism and cynicism towards Bitcoin as the market cap fell by 6% in recent weeks, Nigel Green – chief executive of deVere Group – said that disregarding the potential of Bitcoin was tantamount to standing on the wrong side of history.
“Many crypto critics are becoming radicalised in their attacks,” he said.
“The reality is that there are peaks and troughs in all financial markets, the cryptocurrency market is not – and should not be – any different.
“Yet each time there is a dip in the market or a bout of volatility in cryptocurrencies, the crypto haters declare that digital currencies are finished – only for them to subsequently experience a rally.”
His ire was pointedly reserved for persistent crypto-cynic Nouriel Roubini – particularly after the anti-Bitcoin economist this week declared a “total crypto apocalypse”.
“I would suggest that most people saying these things do not understand the crypto sector as it is relatively young and/or have vested interests in older, traditional ones,” Mr Green added.
“The same people do not make such extreme and unfounded statements with most other financial markets.
“However, whether they like it or not, dyed-in-the-wool financial traditionalists need to accept that cryptocurrencies are here to stay.”
Countering Roubini’s mid-week rant, he described how the world had changed in three significant ways to support the rise of cryptocurrencies.
“First, technological advancement,” he explained.
“We are adopting more and more technology into our lives. And the rate at which we’re doing so is increasing rapidly.
“Second, political shifts. There is an appetite, a huge and growing one, for currencies that are not controlled by central banks and governments. Supporters believe that these digital currencies are part of the antidote to what they see as the ills caused by the traditional system.
“And third, globalisation. We’re all becoming increasingly interdependent and internationally-minded, and this, when harnessed properly, is an immensely positive force for trade, commerce, and prosperity across the world.”
The deVere chief also advised investors to see wild market movements and dips as a positive way to advance capital gain rather than as a negative aspect of trading.
“Temporary market dips or bouts of volatility can have negative outcomes, but to believe they are necessarily and entirely negative is misguided,” he said.
“In the crypto market, as in all financial markets, movements of this nature create important buying opportunities and can be capitalised upon by investors for their long-term financial gain. Using them effectively can be a very rewarding strategy.”