Bitcoin Could Fail, Says Bloomberg’s McGlone

During a recent interview with Kitco, Mike McGlone of Bloomberg Intelligence didn’t rule out that Bitcoin could end up failing, which is why it is perceived as a much riskier asset than gold. 

“We all know that Bitcoin is a new technology. It could fail. I don’t know, I can’t predict what’s gonna really happen with the technology and regulations. It could be banned. It could be regulated away.”

He then adds that the yellow metal has already been through that, thus standing the test of time.   

In 1933, U.S. President Franklin D. Roosevelt signed an executive order to confiscate Americans’ gold. Those who were unwilling to hand in their yellow bulletins or coins below their market value would face up to 10 years in federal prison.

The U.K. also imposed restrictions on gold ownership in 1966, prohibiting its citizens from hoarding more than four gold coins.    

CBDCs will drive demand for Bitcoin

McGlone’s bull case for Bitcoin continues to revolve around its scarcity since its annual supply will never go up.

When asked about how CBDCs are going to affect the flagship cryptocurrency, the analyst believes that they will only add more demand for Bitcoin as a store of value:

“Central bank digital currencies (CBDCs) are just a matter of time, and Bitcoin is the gold to CBDCs.   

As reported by U.Today, Binance CEO Changpeng Zhao recently opined that central banks could only threaten Bitcoin if they manage to come up with an even more open alternative.     

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The oversaturation of the crypto market

As for the broader crypto market, McGlone remains confident that Tether, the largest stablecoin, is going to topple Ethereum in the coming years:

“If the trend remains the same for the next two years, Tether will become the number two crypto. It will be Bitcoin (the store of value), Tether (basically, the digital version of the dollar), and then all the others.”

McGlone claims that there is an oversupply of altcoins, which is why their appreciation is limited.