Morgan Creek Capital founder and CIO Mark Yusko says that Bitcoin (BTC) and the crypto markets have now entered bull territory.
In a new CNBC interview, Yusko says that Bitcoin and the crypto markets are in the early stages of a fresh bull market that could last until next year when BTC goes through its next halving event.
“I think the rally is just beginning. We just entered what’s called the seasonal period of crypto summer. There’s this four-year cycle around something called the halving which is where the block rewards for the Bitcoin blockchain change every four years. That causes a period of accumulation going into that. That event will occur next April.
Then we usually get a speculative blow-off after the halving event and then an overreaction on the downside called crypto winter.”
Yusko is also reiterating what he believes is the top use case of Bitcoin. According to the Morgan Creek Capital executive, Bitcoin is poised to replace gold as the base layer of money.
“Bitcoin is digital gold. It is taking the place of what gold did for 5,000 years. There’s only one money in the world: that’s gold.
Money is an asset that exists in the absence of a liability. Gold has played that role – it sits at the base layer of currency. Currency backed by debt, created by governments to facilitate commerce, sits on top of money: gold
And for 5,000 years gold’s done a good job. But gold isn’t portable. It’s not divisible. Bitcoin, a permanent, immutable ledger does play that role as a base layer of new money going forward.
And we’ll build the future of finance on top of that. The other things beyond that like Ethereum or some of the other applications of blockchain technology may have a role. I think of Ethereum more as a fiat currency replacement.”
At time of writing, Bitcoin is trading for $30,787.
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