While El Salvador’s making Bitcoin officially legal money in the country on September 7 was seriously talked about all over the world, Jurrien Timmer, macro director of Fidelity, which has hundreds of billions of dollars in assets under its management, spoke to CNBC.
Stating that the El Salvador move is important, but exaggerated, Timmer said, “After all, the place of the dollar in the country did not change. The country did not switch from the dollar to Bitcoin. Yes, it is an important move, but it should not be exaggerated.” said.
Here’s what Timmer told CNBC on the subject:
“It is exaggerated, but it will be an important test”
I’ve been watching the Bitcoin story closely for a while. I think it is very important that El Salvador declares legal money, but I also think it is exaggerated. It should be noted that El Salvador did not remove the US dollar. It is also a legal currency like Bitcoin. People have the option to spend or receive dollars. Businesses have to accept both. This was mandated by the state. That’s why I think this development will be an important test as a means of change.
“A new page in history is opening”
Bitcoin’s scarce supply and strong network are the most important factors that make it valuable. At the same time, the proof of work system is decentralized, which actually makes it less scalable than Ethereum. However, all of these will be seen in the coming period. I think a new page in history is opening. The current situation is similar to that of gold in the 1970s. But in reverse… Gold had turned from a coin into an asset. Bitcoin, on the other hand, transforms from a store of value into money or currency.”
Risk Disclosure: The articles and articles on Arover.net do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies.