Just recently in an editorial featuring Chris Burniske, a blockchain analyst and products lead at investment manager ARK Invest analyst told CNBC that Bitcoin is steadily becoming a safe haven in the eyes of investors. The price of Bitcoin has been climbing with fervor lately as post-Brexit economic fears have shaken citizens worldwide.
Alongside the article with Burniske, he also was interviewed by the CNBC news team in a video called “Markets using Bitcoin as a disaster hedge: ARK Invest.” The blockchain analyst describes his opinion of what is happening in the world economy and why investors are seeing Bitcoin as the new safe haven of the 21st century right up there with gold. ARK Invest’s Chris Burniske tells the reporter on CNBC video broadcast:
“Well, what we’ve seen with Bitcoin generally is capital market investors are using it as a disaster hedge. We saw this in the summer of last year with the Greek debt crisis. Bitcoin trading volumes spiked, and the price enjoyed a sustained rise. We also saw it late last year with fear of the Chinese devaluing the Yuan and we saw it with the Brexit this year. As the markets started to grow in tension around the Brexit ‘leave’ vote Bitcoin spiked from $450 and broke all the way through $700 but then as markets started to price in a ‘remain’ during the week Bitcoin showed some softness all the way down to $550. Then it spiked again as Britain shocked the world and voted to leave.”
Burniske helped write the latest report from ARK Invest with help from Coinbase Vice President of Business Development & Strategy, Adam White. The paper called “Bitcoin: Ringing the Bell for a New Asset Class” details the many attributes the cryptocurrency holds as a newly discovered asset class. With the economy in turmoil and the great halving day approaching many Bitcoin supporters believe the price will skyrocket in the coming weeks. Burniske tells the mainstream news outlet in his recent interview whether Bitcoin is a short term solution or a long term safe haven when asked by the CNBC reporter:
“We will continue to see capital market users turning to Bitcoin as a disaster hedge. Due to its low correlation of returns with other capital market assets.— Capital market users are using it for the long term, traders are using it for the short term. I think in the long term when you look at Bitcoin’s stellar and absolute returns, when you look at its drop in volatility, its superior ratios, it shows better returns per unit of risk taken. It’s been a great long term asset.”
The investment manager ARK Invest says the company has invested in Bitcoin and is one of the first public fund managers to do so. Burniske explains they offer ETFs with Bitcoin exposure and its gone up 5X for the firm. So ARK Invest really sees the cryptocurrency as a long term play says Burniske. When asked by the CNBC reporter whether or not the company is afraid of regulatory policies stifling Bitcoin Burniske says it will be interesting. The ARK investment manager says most of the trading volume happens in China, and with conversations he’s had with US regulators and friends of his he says, “some people are upset that the U.S. is not taking the reigns with Bitcoin.”
Burniske also explains the UK has really progressive regulations surrounding the cryptocurrency and as people realize the value Bitcoin offers it will gain more popularity. He calls it “Money over IP, which means just as voice over IP revolutionized voice communications, Bitcoin as money over IP is revolutionizing the transfer of value.” Burniske states now you are seeing a lot of people open up to the cryptocurrency with its “utility as a technology and as an asset.” To Burniske and many capital investors in the world, Bitcoin is a new asset class.
Turbulence ahead, with Brexit, now another devaluation of the yuan and the halving in less than 2 weeks. Hold on to your hats. Wild Monday
— Andreas (aantonop Team) (@aantonop) June 27, 2016
Bitcoin is uncorrelated with just about all other assets. Every prudent portfolio manager should thus consider it. #Brexit #diversification
— Erik Voorhees (@ErikVoorhees) June 24, 2016
Source: CNBC Video Markets using Bitcoin as a disaster hedge: ARK Invest
Images: CNBC, Pixabay
