In a recent media interaction on Friday, Daryl Ho, investment strategist at DBS Bank, mentioned Bitcoin and its relevancy in the present times.
Talking of Bitcoin and its prices, he said that if one solely focuses on the price of Bitcoin, a lot of volatility can be seen. This also informs us of the various benefits it brings. He also called Bitcoin to be unique irrespective of the change in prices.
Daryl further pointed out that Bitcoin’s uniqueness is not affected by its price but rather by its utility which allows decentralized value transfers without the need for a central counterparty to clear the trade. Most of the methods by which assets are traded require a centralized body to validate and verify the trade.
Speaking on the topic further, Daryl said that Bitcoin gives users an opportunity like never before, something that fiat money does not offer. He further mentioned that the fiat monetary systems are all governed by the central banks, whereas Bitcoin’s 13-year track record raises confidence and trust in the crypto market.
Commenting on the assets’ liquidity and how it is further enhanced in the Bitcoin market, Daryl said that in February, one couldn’t liquidate any assets they were holding due to the exchanges being closed. However, the Bitcoin market was open, so there was still a convenient opportunity for users to gain cash and liquidity like never before.
The DBS Bank, in recent times, has shown significant interest in light of digital currencies. Piyush Gupta, CEO of DBS Bank, said he does not think that cryptocurrency could become money; however, it could be a preferred alternative to gold and its value. In 2020, the bank supported the trade of 4 important cryptocurrencies – Bitcoin, Bitcoin cash, Ethereum, and Ripple and had also debuted in the metaverse recently.