Bitcoin has reached the mainstream. Former New York Stock Exchange President Thomas Farley said during an interview on Squawk Box that Bitcoin “is trustworthy and censorship-resistant, there will only ever be 21 million and it has to be part of a portfolio.”
Farley is an American banker and current CEO of Far Point Acquisition Corp. He said:
“When Bitcoin was $60,000, there were a lot of institutions on the sidelines that looked and said, ‘Boy, we’d like to invest. We’d like to allocate 1% to 3% of our portfolios, say, to pension funds, but it’s $60,000. It feels spongy, there’s a certain mania.’ But they have done the diligence. They have met with their investment committees. When it dropped to $17,000, it came as no shock to me that you saw some of these institutions buying bitcoin for their portfolio for the very first time.”
When asked about Bitcoin’s volatility, Farley said there was “a moment of capitulation.”
“I think it’s a combination of some really smart bitcoin whales that have been at it for 10 years and then, pretty quickly, some of these institutions step in, that’s what happened. Bitcoin is up 40%. That doesn’t mean it’s going to rise another 40%. But in crypto there is bitcoin. And then there’s literally everything else. Bitcoin is trusted. it is largely censorship-resistant. There will only ever be 21 million Bitcoin. It has to be a component and a portfolio of broad portfolios, like a pension fund. Maybe just a small part, but it has to be there.”
After declaring his support for BTC, Farley commented on all other coins. “Then there are all other cryptocurrencies. Ethereum is in a special class of its own. Then there are stablecoins, and everything else looks like a speculative stock. You might make money by investing in it, you might lose all your money.”
Although Farley has been a strong supporter of Bitcoin, he tempers that opinion with the occasional cautionary tale.
Incidentally, this also includes Bitcoin. Bitcoin is a store of value, but the price volatility is much, much higher than other stores of value. Yes, the upside potential of holding BTC is high. But so is the downside. The phrase “to the moon” is dangerous.
— Thomas Farley (@ThomasFarley) May 21, 2022
“Bitcoin is a store of value, but the price volatility is much, much higher than other stores of value. Yes, the upside potential of holding BTC is high. But so is the downside. The phrase ‘to the moon’ is dangerous.”
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