Prominent venture capital investor Keith Gilabert has stated his belief in the “sharp” rise in the value of Bitcoin in the near future.
Speaking in a press release issued yesterday, the Fina V Capital president stated that international oil prices and associated currency weakening could see investors flocking to “alternatives” such as Bitcoin in greater numbers.
“Bitcoin could rise significantly as currencies around the world and oil prices continue to weaken,” he said, adding that in his opinion Bitcoin “is the new gold.”
Gilabert, whose sponsorship includes humanitarian efforts around the world in addition to Fina V Capital, said in a previous release in June that the company was “bullish” on Bitcoin and its price due to the demand witnessed from hedge funds. Now, he notes that the struggling economies of Russia and India as a direct result of oil is good news for Bitcoin.
“I expect to see hedge funds moving into Bitcoin first since they are the most fluid and proactive investors,” he continued. “Bitcoin has become an alternative to gold and the U.S. dollar around the world.”
With the price of Brent crude currently hovering around a five-year low of US$55.12 per barrel, economies such as Russia are feeling intense downward pressure, as they require a significantly higher price in order to balance their state’s budget. Gilabert sees risk across the board, but considers the US to be more immune than most, while further helping to foster domestic and international Bitcoin usage.
“[…] The negative momentum will be very difficult for oil to reverse and this will cause more pressure globally. The U.S. is not immune to this global crisis but its economy is more diversified and because the dollar is currently backing Bitcoin, this digital currency will be stable and it will cost less for an individual to trade in and out of.”
Increased accessibility combined with decreased volatility is music to the ears of many digital currency advocators, but Bitcoin’s price has historically been notoriously difficult to predict.
“Bitcoin continues to develop and currently it is still a volatile trading instrument with risk, but I do expect the volatility to decline as more consumers and businesses accept the currency,” Gilabert adds, recognizing its other intrinsic uses. “Bitcoin offers a standard protocol for currency and stored value, the blockchain platform makes Bitcoin safer than a credit card or even a bank.”
Despite falling prices, Bitcoin investor numbers grew by an average of 3.12% in 2014, Bitcoinist notes, while company growth averaged 14.18% monthly.
While Russia has bailed out its first bank this week with over 30 billion rubles (around US$550 million), it is in countries such as neighboring Belarus, CoinTelegraph considered, where Bitcoin could serve as an exit strategy. The government, whose policies include direct ties with the Russian economy, imposed capital controls in the form of a 30% foreign currency tax in order to protect the Belarusian ruble, whose value has begun to fall significantly.
Did you enjoy this article? You may also be interested in reading these ones: