Bitcoin is the Best Digital Currency to Buy: Spencer Bogart

Despite the turbulence that has characterized the cryptocurrency market since the beginning of 2018, Bitcoin remains the cryptocurrency to buy.

According to venture capitalist and Blockchain Capital partner, Spencer Bogart, it is the only cryptocurrency traders should be buying as it enters mainstream markets.

Since January 2018, Bitcoin has experienced high volatility with its price dropping by more than 50% after hitting a high of $19,500 in December 2017. Over the last three weeks, Bitcoin price has dropped to trade at $7,400 on May 25, 2018.

But despite the high volatility, the currency has demonstrated tremendous resilience. On May 24, 2018, Bloomberg reported that the Justice Department in the US was initiating criminal investigations to determine whether Bitcoin prices are being manipulated. Following the announcement, the price of Bitcoin experienced a sudden drop to $7,339 but recovered later in the day to trade at $7,599.

Bitcoin Institutionalization

Mainstreaming of Bitcoin is increasingly becoming evident in the banking sector. Speaking during an interview on CNBC on Friday, Bogart said increasing application of Bitcoin is a strong sign the digital currency is getting institutionalized.

“The institutionalization of Bitcoin is absolutely occurring. Every major bank is trying to do something in this space. Either they are going to be offering Bitcoin to their clients, [or] they are working on a custody platform, or they are operating a trading desk. So, that’s absolutely taking place. A deeper institutionalization of Bitcoin is overall positive,” Bogart said.

In August 2017, Switzerland’s Falcon Private Bank allowed its customers to buy and hold Bitcoin as well as Litecoin, Ethereum and Bitcoin Cash, the first Swiss private bank to do that, On May 2, 2018. Rana Yared, an executive at Goldman Sachs was quoted on by New York Times saying the bank resonates with clients who prefer to hold Bitcoin.

“It resonates with us when a client says, ‘I want to hold Bitcoin or Bitcoin futures because I think it is an alternate store of value’,” Yared said.

The bank set up a team to look into possibilities of trading Bitcoins. Further, Goldman Sachs has started establishing a Bitcoin trading desk to trade Bitcoin-futures for its customers.

Morgan Stanley, a competitor of Goldman Sachs may also be headed in the same direction. On May 15, 2018, Nomura, an investment bank based in Japan made public its digital asset offering.

Coinbase, the largest cryptocurrency in the US, has developed a product suite targeting hedge fund customers. The digital currency exchange strategically opened a branch in New York to reach hedge fund clients. The exchange is also strengthening its institutional investor services to facilitate large trades that are characteristic of sophisticated investors like hedge funds.

Hold or Sell

According to Bogart, a majority of cryptocurrencies in the coin market today promise more than they can deliver.

He said many cryptocurrencies are “over-promising and under-delivering. Meanwhile, you have a few that are kind of excelling at their use cases, Bitcoin being one of them,” he added.

In Bogart’s view, investors should be selling cryptocurrencies such as TRON, NEO, Cardano, and IOTA adding that “a lot of those tokens are overvalued. They could go up significantly, but they also have a significant headwind.”

On the other hand, the venture capitalist advises investors to hold on currencies like Ripple, EOS, Bitcoin Cash and Ethereum that he termed as ‘neutral’.

Featured image 

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.