Bitcoin will be liquid and stable when regulatory certainty is set up, Bridgewater’s manager of investment research contended.
A senior analyst in asset management company Bridgewater considers that regulation might possibly make Bitcoin (BTC) a fantastic advantage for institutional shareholders.
Bridgewater manager of investment study Rebecca Patterson asserted that regulatory certainty about Bitcoin would fix a number of their cryptocurrency’s most important issues related to higher volatility and reduced liquidity.
Patterson went on to state the volatility Issue and liquidity problems would deteriorate if Bitcoin becomes a better-regulated advantage:
“The further you get a genuine regulatory ecosystem growing around Bitcoin along with other monies, the more other kinds of investors will be comfortable coming in, that is likely to attract liquidity, that is going to decrease the volatility”
“So I figure if there was something that I had been watching first, it’d be visiting greater regulatory certainty,” Patterson said, adding,”I am not certain if that is likely to come from the U.S.”
Patterson also stated she does not look at Bitcoin as an”alternative money” but instead as electronic gold. “If anything, it is a substitute for gold or electronic gold. I believe that are the better contrast,” she explained. Patterson reported that many investors are searching to Bitcoin over worries about inflation triggered by central bank cash printing. But for Bridgewater, Bitcoin still wants to establish its status as electronic gold:
“As institutional investors, we do not know however if it’s likely to be electronic gold, it might be over time, however I do not believe we could say that with confidence nonetheless. And that impacts whether or not our customer should own it”