FTX Founder SBF: Dogcoin is still far from Bitcoin and does not pose a threat

SBF was interviewed live on Bloomberg and gave his insights on the differences between cryptocurrencies and traditional finance and the changing financial times.

FTX Founder SBF: Dogcoin is still far from Bitcoin and does not pose a threat

On May 11, FTX founder SBF was interviewed live on Bloomberg and gave his insights on the differences between cryptocurrencies and traditional finance and the changing financial times. FTX had over $400 billion in trading volume in April and Coinbase stock has a market cap of $58 billion after going public due to the growing volume of the cryptocurrency market.

The Bloomberg host asked SBF on the matter: “Do you think the current cryptocurrency boom is a runaway phenomenon, or is traditional finance obsolete (passée)?

The first is the pessimistic idea that there is a lot of leverage in the cryptocurrency market and it’s easy to see a drop of more than 5-20% in a day, and most of that is caused by leverage,” SBF said. He went on to say that on the optimistic side, most international financial regulators have started to do something in the past year to get more large financial institutions willing to engage with cryptocurrency assets, giving the industry a chance to be able to grow significantly in the coming years.

Bloomberg host: Previously, the Governor of the Bank of England said that investing in cryptocurrencies is to “be prepared to lose everything”, what do you think?

SBF: If you want to invest in cryptocurrencies, you have to be prepared to lose everything. There’s nothing wrong with that because cryptocurrencies are very volatile compared to stocks. But if you have a commitment to a high-risk investment, you should be aware of the risks and be prepared to lose money if the market goes down.

SBF doesn’t see this as a serious matter, though.

Bloomberg host: What are your thoughts on the recent surge in competing coins such as ethereum and dogcoin?

SBF: The rise in ethereum and dogcoin is a completely different thing. Because ethereum is really starting to attract some institutions that used to only buy bitcoin and start buying ethereum. The reason for the rise in ethereum is more complex, it’s caused by a lot of drivers. The dogcoin rally is relatively simple. It’s like the retail buying binge on the GameStop (GME) and Telsa (TSLA) hype, especially with Musk’s buying.

Bloomberg host: Are there fundamentals in cryptocurrencies, or is it just speculation?

SBF: “There are some coins that have fundamentals, though there are also many that are not backed by fundamentals at all. But, on the other hand, what are the fundamental drivers of the value of assets like gold and the euro? It all comes from our collective imagination. And a lot of currencies work from our collective imagination, and that’s true for cryptocurrencies as well. And just because a lot of people want to buy dogcoin, that brings it value.

Bloomberg host: Does dogcoin bring a threat to bitcoin?

SBF: There have been a lot of real concerns about Bitcoin over the years, but it’s never really had an impact. Dogcoin’s growth does feel surprising, though it’s still a long way from Bitcoin. It’s true that Bitcoin has gained value recognition from many people and has the most adoption, though that doesn’t mean it will never change. But what will really challenge Bitcoin’s position is not just the fascination factor, but the need for more inducements for financial institutions to want to pay attention.

Bloomberg Host: What are the implications for financial markets if it turns back to a bear market?

SBF: The current state of affairs is mostly good for the crypto market as it comes into the limelight of the financial markets. It’s not just things like ‘bitcoin as an alternative asset’ or ‘safe-haven asset’, but now blockchain and cryptocurrencies are each, unlike before, gaining greater attention. But for now, the cryptocurrency market is not considered a systematic point in the global financial markets, so it won’t have an impact for a while.

Bloomberg host: Some people think it doesn’t matter if dogcoin has fundamentals or not, the point is that it has volatility, what should we look for in such a view?

SBF: That would be zeroing in on the fact that one would not recommend investing in such a high-risk asset. However, just as the value of gold does not come from its use as a metal, you wouldn’t know what will happen to dogcoin.

Bloomberg host: Will there be an IPO planned next?

SBF: There’s no way we haven’t thought about an IPO, but it’s not something that’s planned for the near future. What we are doing is that there will be more acquisition plans, and in addition, we will not be acquired in the future.

Link to original video: https://www.bloomberg.com/news/videos/2021-05-11/ftx-surges-toward-top-of-trading-ranks-video

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/ftx-founder-sbf-dogcoin-is-still-far-from-bitcoin-and-does-not-pose-a-threat/
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