“Bitcoin is bought by people who want to control their capital”

Circle startup CEO Jeremy Allaire expressed confidence that Bitcoin is attracting investors as a safe asset.

At CNBC’s Squawk Box program, Ellair noted that despite the recent volatility of the first cryptocurrency, Bitcoin remains a popular risk hedge.

“Obviously, a non-state digital asset, such as bitcoin, is attractive for people who want to put their money in such an asset that they can manage on their own. Bitcoin confirms the thesis of digital gold and I think that many institutional investors buy the first cryptocurrency. And most often it is bought by people who live in countries or in an environment where there is serious concern about capital controls. This reason has greatly influenced the Bitcoin exchange rate over the past 8 years, ”said CEO Circle.

As for the recent volatility of the first cryptocurrency, according to Ellair, the point is in taking profits by a large number of people. In addition, the political instability in Hong Kong influenced the price of bitcoin.

“For many people, the portfolio has received some shock. Bitcoin has grown by more than 100%, almost 200% over the past 9 months, so it’s time to take some profits, ”said Jeremy Ellair.

Note that in May this year, Circle CEO called
authorities to make industry regulation more transparent, and the concept of cryptocurrencies more clear.