Bitcoin Could Start Trading Like Gold, Says Bitstamp USA CEO
Bobby Zagotta – Chief Executive Officer of Bitstamp USA – believes there is currently a “little bit of de-risking” in the digital asset sector as many investors have turned to stablecoins. However, he predicted that bitcoin could start trading like gold soon, assuming private cryptocurrencies gain more mainstream adoption.
How Zagotta Sees the Future of Crypto?
Bitcoin’s proponents often compare the asset to gold, arguing it is a hedge against inflation and an alternative investment strategy during periods of a financial crisis (as the precious metal has been viewed for years). Another individual who supports that thesis is the CEO of Bitstamp USA – Bobby Zagotta.
In a recent interview for CNBC, the top executive forecasted that BTC could start trading like gold once the coin becomes a “more of a mainstream investment.” Nevertheless, the primary cryptocurrency has not yet reached that point.
Zagotta outlined the uncertainty that is reigning in financial markets today. In his view, the majority of investors currently stay away from risk assets such as digital currencies. The constantly rising prices of goods and services, the COVID-19 pandemic, and the military conflict in Ukraine have caused many people to start putting money in less volatile assets, including stablecoins, he stated.
The CEO also touched upon President Joe Biden’s executive order on digital currencies. He noted that there are millions of crypto investors in the USA, and it is “really important that the government recognizes the opportunity as legitimate and valid.” Zagotta believes the directive is a “strong step towards clarity,” which in turn will bring confidence in consumers.
Subsequently, he praised Biden’s decision to embrace crypto and to turn the States into the industry’s global leader:
“Its tone is, at least to my read, focused on innovation and competitiveness for the US. We think that is incredibly important. President Biden is not only saying that the US should accept crypto but also be a leader in this emerging global arena.”
Bitstamp’s Recent Endeavors
Based in Luxembourg, Bitstamp is among the leading European crypto exchanges. It allows trading between fiat currency and numerous digital assets, including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and more.
At the end of 2021, the company enabled its customers to trade Shiba Inu against the US dollar and the euro. Interestingly, Bitstamp denied embracing Dogecoin, explaining that the first-ever memecoin is too influenced by Tesla’s CEO – Elon Musk.
Earlier this year, the trading venue revealed intentions to enter the world of traditional finance by offering stock trading products to its users.
Last month, Bitstamp signed a three-year partnership with the esports organization – Immortals. As a result, the former will act as the official digital asset exchange of the gaming company.
