Former Bitcoin Bubble Proponent Endorses BTC Utility in International Payments
Mark Mobius, co-founder of Mobius Capital Partners believes that bitcoin is becoming increasingly important in the international payments arena even as trade disputes exert more pressure on fiat currencies. Mobius had in the past been part of the “bitcoin bubble brigade.”
Trade War Cements Growing Utility for Bitcoin
Speaking on Bloomberg’s Daybreak Europe, Mobius declared that the desire for private and confidential international transactions is pushing more people towards bitcoin and other cryptocurrencies.
With trade tensions between the U.S. and China, Beijing may decide to devalue its currency to offset the cost of increased U.S. tariffs. This move could force wealthy Chinese citizens to safeguard their wealth in assets devoid of counterparty risks like bitcoin.
Mobius’s comments are at odds with the rest of the bitcoin bashing brigade who continue to assert that BTC will soon go to zero. Recently, Berkshire Hathaway chief executive officer (CEO), Warren Buffett described bitcoin as a gambling device.
Bitcoin is currently riding high, having more than doubled in price since the start of the year. The top-ranked cryptocurrency is also approaching a market capitalization of $150 billion, its highest level in over ten months.
Despite expressing confidence in the pioneer cryptocurrency’s utility at least in the payment arena, Mobius declared that he doesn’t hold any investment position in the cryptocurrency. The popular investor cited issues regarding volatility and frequent exchange hacks as reasons for his reticence.
Mobius is known for having a preference for emerging markets and is a long-time veteran of holding investment positions in frontier asset classes across the globe.
Price Retracement Imminent?
Meanwhile, some experts are beginning to express the view that bitcoin might experience a pause in its current upward price action followed by a retracement that could see it go as low as the mid-$4,000 region.
So far, BTC has been unable to maintain any upward price movement above the $8,100 to $8,200 price range indicating the presence of resistance at that level.
Such a retracement wouldn’t necessarily signal an end to the bullish sentiments, however. Traders who collected profits above $7,000 might be incentivized to buy back in the hopes of another upward push.