In any debate, you will find people on both sides of the argument. Even for something as ridiculous as the idea of a flat earth, you will find people unwavering in their beliefs.
So, when it comes to Bitcoin, the debate is raging. What is it? Is it a speculative asset? A bubble? A store of value? A medium of exchange? The hardest money ever created? Will it go to $10M or will it go to zero?
The answer to all of it, according to reddit, is: Yes.
Crypto has been at the forefront of the news media lately, luckily for all the right reasons. So today, we have 2 of our local banks coming out with reports that, surprise surprise, kinda contradict one another.
OCBC: Crypto could replace gold as a store of value
Bank of Singapore, the private banking arm of OCBC, said that if crypto could navigate through a few hurdles, they might be able to replace gold as a safe haven asset. What are some of the hurdles?
- Liquidity issues
- Safe custody for institutions
- Regulatory acceptance
- Managing reputational risks
Once these are addressed, Bank of Singapore reckons it’s moon time baby! However, they do not see crypto displacing Fiat currencies as a medium of exchange.
DBS: Bitcoin is unlikely to replace gold as a risk diversifier
For a bank that has launched a digital currency exchange, it’s a weird stance for them to take, especially when you look into their arguments to back up their statement. They compared bitcoin to a penny stock (stocks and currencies work in different ways, and I can’t believe I need to tell a bank this), and laments about intrinsic value by saying they can build a house of gold, but not a house of bitcoin.
They then talk about Gold having a long history, compared with Bitcoin’s 12 year history. That is true, but remember, all great things had to have a start. Even Dwayne The-Rock Johnson was a wee little baby at one time, with awkward adolescent photos.
So, who do you think will be proven right? Personally, I’m just surprised that DBS, presumably the more bullish one give they launched a crypto exchange, is actually more bearish on the future of crypto.
Then again, I’m not sure how much to believe in reports anymore. Everyone has some level of agenda in everything they put out. So, DBS may just be trying to suppress price so their clients can load up. It will be more interesting to see the types of reports they circulate to their internal wealth banking clients.
Either way, we’ll find out soon enough.
If you have gotten yourself some crypto, remember to check out my hardware wallet review of Ledger Nano S and Nano X to know how to keep your crypto assets safe.
Who care? What is DBS and OCBC,, They are too small, What they said can only eat by themselves, LOL