Brian Kelly, founder, and CEO of BKCM LLC, a digital investment firm, portfolio manager of the BKCM Digital Asset Fund as well as author of “The Bitcoin Big Bang – How Alternative Currencies Are About to Change the World” has given his thoughts on why Bitcoin will surge. Talking with CNBC news, he gave his three reasons:
Enter Goldman Sachs
As Goldman Sachs confirmed on May 2nd, it has officially begun development of its own crypto-trading desk which will help to open up a huge part of the traditional investment community to cryptocurrency. A Goldman Sachs executive, Rana Yared, stated that whilst there were many skeptics at the firm, they had taken the decision due to overwhelming pressure from clients to allow trading in cryptocurrencies.
Yared stated, “I would not describe myself as a true believer who wakes up thinking Bitcoin will take over the world. For almost every person involved, there has been personal skepticism brought to the table. [But] 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’.”
Regulations are getting clearer
Kelly also highlighted that the Securities and Exchange Commission (SEC) had helped in providing clarity on the legal status of bitcoin, which stated that it cannot be considered a security.
Jon Clayton, head of the SEC, stated that the fact that bitcoin was discussed as a currency, coupled with the fact that it does not benefit a single company, institution or organization means that it cannot be considered a security.
Clayton gave his thoughts: “It’s a complicated area because … there are different types of crypto-assets. Let me try and divide them into two areas. A pure medium of exchange, the one that’s most often cited, is Bitcoin. As a replacement for currency, that has been determined by most people to not be a security,”
Blockchain Week in NYC
On May 11th, ‘Blockchain Week’ is starting in New York City, which will see blockchain and crypto enthusiasts fill the city for a week of expositions as well as a hackathon and job fairs. It will mark the largest coming together of pundits and industry in the world and Kelly predicts it will have a positive effect on market prices.
Kelly predicts the combination of these factors will help to push the Bitcoin price through to the higher supports of $12,000 and $14,000, perhaps marking the start of another significant bull run.
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