On Friday we saw Bitcoin trade at its highest price since it was first introduced, reaching an unprecedented 5863.93. For the readers that are unfamiliar, Bitcoin is a cryptocurrency (which means currencies that are not regulated by central banks, nations or other regulatory authorities) introduced in 2009. Its inventor is still shrouded in mystery known only by the name Satoshi Nakamoto, but his/her identity is completely unknown otherwise. It is a completely digital form of currency held in digital wallets – you can purchase Bitcoin with credit/debit cards, bank transfers and more recently through ATMs which take cash for Bitcoin.
Today we speak with easyMarkets Global Strategist James Trescothick, looking for a bit of insight into the movement of this cryptocurrency, how it climbed to its record high and what we may happen in the future.
Hello James, thank you for having this interview with us today, tell us a little about what your role is at easyMarkets and a little bit about your experience in the financial industry.
My pleasure, I am easyMarkets Global Strategist, but I also produce educational videos and content for the company due to my experience. I also present and conduct seminars globally and organize webinars for our customers. I have 20 years experience in the financial service industry most of this time was spent working within the Mediterranean and Middle Eastern region.
So James, as an experienced professional in the financial industry how do you see Bitcoin?
I feel that Bitcoin has been a disruptive market, decentralized and unregulated it’s not as dependent on macroeconomics as some other currencies are. For example when the ECB has meetings – markets respond, when the Fed has meetings, you might see the results affect the dollar. Without a central bank though there’s nothing policy-wise at least to affect the cryptocurrency.
So is Bitcoin’s price completely immune from geopolitical events?
Absolutely not, in fact we saw investors treat it as a safe-haven during the recent frictions between the U.S. and N. Korea pushing it up to a substantial 4362.51. This may have also been a factor in Bitcoin surpassing safe-havens such as gold on Friday.
Do you think that Bitcoin is a new defacto safe haven?
At the moment, it is far too volatile to be considered as such. If you notice the fluctuations that Bitcoin experienced since the beginning of the year, it’s prices sound like they are from multiple currencies not the same one! It started out 2017 at $1025.48, dropping to $796.41 just a few months later and reaching $5863.93 last Friday.
That was very insightful James, thank you very much.
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