“Bitcoin is a solution 100 times better than any other asset”: president of OKX

Hong Fang, president of the OKX cryptocurrency exchange, gave a convention through which she highlighted the position of bitcoin (BTC) as a superior retailer of worth.

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This speak came about on October 19 on the cryptocurrency business congress in Argentina known as Tech Forum, which CriptoNoticias attended.

Fang started his intervention by indicating that there are two key components that he discovered when learning markets, which made him see the relevance of bitcoin. First of all, “if we study the data and analyze things, put them in context, we will see reality for ourselves,” he says. “These will tell us the truth,” he provides.

Secondly, with regard to the market, he warns that when short-term costs are analyzed, they’re simply “noise”. “There are a lot of emotions at play, a lot of behaviors, a lot of psychology, a lot of irrationality that is reflected in the short-term market,” he says.

“But if we really zoom out and look at things on a three-, five-, 10-, or even 50-year time frame, we start to see the trend, we start to see what’s really happening,” he provides.

“The long-term market is actually trying to tell us something that we generally ignore, mainly because as human beings we are easily distracted by short-term signals.”

Hong Fang, president of OKX

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With such issues in thoughts, the principle digital foreign money takes on whole relevance. “Anytime you look at a time frame of more than three to five years, a long time frame, you see bitcoin outperforming everything drastically, not just 2x or 3x, but more than 10x or 100x sometimes.” , he emphasizes within the convention.

The appreciation of bitcoin in the long run above belongings similar to gold and the S&P 500 (SPX), an index that compiles the shares of the principle 500 corporations listed within the United States, will be seen within the following graph.

“What the market is trying to say with that is that, regardless of who we are (whether you are from Argentina, the United States, Dubai, Asia…, whatever your culture, religious background, language you speak), we all have a fundamental need: we want a secure way to store our value and transfer our value over time and space; and we want to do it without the need for a trusted intermediary,” he warns.

Fang highlights that that is what bitcoin actually affords. “It is a solution that is 10 times or 100 times better than anything else that exists right now,” he distinguishes. He attributes this not solely to its worth valuation over time, but in addition to other traits of its essence that promote its demand.

“It is natively digital, efficiently divisible and globally accessible. It can be verified on-chain and you can see it settle on the network in a matter of minutes. It is finite, free of inflation. No country, central bank or intermediary can control the global network. That is why many people are attracted to it, whether they are retail or institutional investors,” concludes the pinnacle of the exchange.

Governments and huge establishments will purchase bitcoin silently, based on Fang

These days, with the presence of bitcoin exchange-traded funds (ETFs), it signifies that each corporations, institutional traders and governments have gotten on this asset. However, this can be occurring stealthily and silently.

“When it comes to institutional clients, corporations and governments that are thinking about investing in bitcoin, unlike retailers, they don’t usually talk about it until they feel they have accumulated enough,” he factors out. “When they start talking about it, it is already a fait accompli,” he provides.

This could also be as a result of they’ll take the chance to purchase at costs which may be low in relation to what they are going to be like once they begin speaking about bitcoin values.

Bitcoin is a retailer of worth with better potential than its opponents, based on Fang

For Fang, the rising market pattern signifies that bitcoin It is nonetheless in a very early stage of what could develop over the following decade. In the one fifteen years which have handed for the reason that origin of bitcoin, its capitalization already exceeds 1,300 trillion {dollars} (USD).

Although this determine is a lot bigger than the USD 400 billion recorded when the next graph was made, it stands out that it is nonetheless small in comparison with the capitalization of other belongings similar to actual property, gold, shares, bonds, cash or artwork. This provides you the concept that the market has the potential to proceed hoarding capital.

The businesswoman says:

“Bitcoin has much more to offer than any of its competitors because, again, it is a decentralized network with independent governance, and does not have the risk of being intervened by third parties. It is durable and very easily portable, unlike real estate, a large piece of art or a cruise ship, where some billionaires invest.”

Hong Fang, president of OKX and former director of Goldman Sachs financial institution

Apart from the switch of world wealth to bitcoin, Fang additionally distinguishes that world funds are shifting into the cryptoasset ecosystem. Regarding this, he signifies that, though there have at all times been completely different tribes inside the neighborhood debating whether or not bitcoin is for a retailer of worth or funds, the latter is not rising on a massive scale.

“There are a lot of folks enthusiastic about bitcoin being for funds, and I embrace myself in that group too. I’m actually excited that bitcoin is lastly for funds and issues like Lightning, for instance, may very well be a good candidate for that. However, within the final 12 years, we’ve not seen that actually take off.

The specialist signifies that, since 2016, a massive proportion of bitcoin transactions have moved to stablecoins. The latter have even been growing above cryptocurrency buying and selling, as the next graph reveals.

With this, he means that The use of bitcoin appears to be, for the second, extra linked to a retailer of worth than to funds. Therefore, past the desires of lovers, the specialist insists that it is essential to investigate the info to establish market habits.