Zac Prince says he’s bullish on Bitcoin and Ethereum despite both assets’ recent volatility in the wake of the coronavirus pandemic.
The CEO and founder of the crypto wealth management firm BlockFi, Prince thinks US government stimulus policies and the upcoming Bitcoin halving – currently set to roll out on May 12th – are bullish indicators for an increase in the price of BTC.
He also believes steady stablecoin adoption and app development on the Ethereum blockchain are positive signs for the future value of ETH.
6/ Market Dynamics:
– Fully digital business with remote work enabled as a baseline
– Investors are looking for safe havens, we offer a high yield on USD
– Bitcoin / Ether well positioned for growth (money printing + halving for #BTC, stablecoin adoption and app dev for #ETH)
— Zac Prince (@BlockFiZac) April 15, 2020
In a recent interview with Scott Melker, Prince explains why crypto crashed so rapidly last month.
“If you’re a long/short hedge fund or a macro hedge fund and you had decided that allocating a couple of percent of the capital that you’re managing into Bitcoin was a smart decision a couple of months ago, and things start to get wobbly, and panic is setting in, and the traditional equity markets aren’t open yet, the first thing you’re gonna sell is Bitcoin.
One, because you can, and two, because it’s kind of far out on the risk spectrum in terms of your portfolio. I think all of those things happened at the same time and created this perfect storm, but what’s interesting is that the market has recovered pretty quickly.”
Prince believes the government will print “a ton” of money to stimulate the economy, but he remains uncertain whether that cash will be effectively directed to the people hit hardest by the coronavirus shut-downs, like tourism and restaurant professionals. Nevertheless, he thinks both crypto and the US dollar have an opportunity to skyrocket in value.
“How effective we are at directing that stimulus will be an indicator of how quickly the traditional markets will recover. And I think you’ll see a big separation starting very soon in terms of performance from equities like technology companies that don’t really have an in-person component to their revenue generation versus more legacy, traditional businesses… I think it’s crypto’s time to shine. And I think it’s the dollar’s time to shine.”
Prince also distances himself from some members of the crypto community who seem to root for the death of the dollar – a situation that could cause a lot of pain and suffering for ordinary people.
“Grandma loses her house and your family loses their car and anybody who wasn’t in the tipping point early enough doesn’t really have any money. I don’t think that’s gonna happen.”
Still, the BlockFi CEO thinks Bitcoin has a lot of room to grow within the current monetary system.
“I think that we could see a world, 5, 10, 20 years from now where some combination of the acceleration of dollarization of other economies starts to happen, and also the adoption of Bitcoin as a little bit of a reserve in different scenarios starts to happen as well. So I think it’s completely logical to be both bullish that the dollar stays the reserve currency for the foreseeable future and Bitcoin reaches new all-time highs again, soon as well.”