As the Russia-Ukraine armed conflict wreaked havoc on global markets with increasing oil prices, and inflation reaching levels not seen in decades, it is critical to figure out how digital currencies such as Bitcoin and Ethereum are faring in the current financial climate.
Additionally, the continuing debate between governments and financial institutions over whether cryptocurrencies should be restricted and the realistic long-term price targets of digital assets are worth noting.
Cryptos with economic promise won’t be prohibited.
In a recent interview with a media organisation, renowned investor Kevin O’Leary refers to bitcoin as the “granddaddy” of digital assets and opines that outlawing Bitcoin and other cryptocurrencies is no longer an existential threat.
The multi-billionaire explains that there is no possibility of Bitcoin or anything else that “holds economic promise” being banned with respect to developing innovative technologies for financial services and payment systems.
The “Shark Tank” co-host, who is a big stakeholder in a new Defi investment firm, also touches on bitcoin’s transition to being ESG-friendly and the impending tipping point for institutional acceptance — and how it may help its price soar in the future.
Hedge fund manager is not ruling out a ban.
In contrast to O’Leary’s perspective, hedge fund manager Roy Niederhoffer, founder of R. G. Niederhoffer Capital Management, says that he is not ruling out a prohibition.
Niederhoffer reminds investors that there was a time when even gold was illegal to hold in the United States. He said, “here’s a chance that Bitcoin could be banned”. Numerous governments, including the United States, prohibited the private ownership of gold. However, if that were to happen, the resulting climate of turmoil and hyperinflation would make Bitcoin much more valuable. “If they’re going to ban it, it’s going to be the time when you absolutely want to load up on Bitcoin.”
Both panellists agreed that regulation of the cryptocurrency market was inevitable, but it would lead to a tremendous surge in response.
“[Once] we have this regulation in place,” O’Leary asserts, the institutions will pour trillions of dollars. Speculators will gain from the fact that “these will get indexed and that will be a great upside.”
According to CoinMarketCap statistics, Bitcoin is now trading at $44,410, down 0.26% on the day but up 6.33% in the previous week.
