An investment specialist at DBS bank, the largest bank in Southeast Asia, claims that bitcoin is special regardless of its price. The DBS strategist emphasised that if we only consider price, we would notice a lot of volatility and it doesn’t really tell you much about the benefits it actually provides.
DBS bank strategist on Bitcoin
DBS bank investment strategist Daryl Ho talked about bitcoin on Friday in a recent media briefing. He explained that if we only pay attention to the price, the advantages of the item and its features would be overshadowed. It’s similar to continually focusing on how much Amazon’s shares cost rather than the services the business provides.
Daryl went on to say that more than its price, what makes bitcoin special is its functionality, which enables decentralised value transfers without the need for a central counterparty to approve the contract.
He continued by saying that whereas most asset exchange methods require a central clearing house to confirm the transaction, bitcoin provides a level of risk that fiat money does not. The expert noted that central banks still maintain authority over fiat monetary systems while also noting that bitcoin has a 13-year track record, which increases investor confidence in the cryptocurrency.
If you were holding onto certain rationed assets at the start of February, you might not have been able to sell them at will, according to Ho, who claims that many trades were temporarily stopped. But with Bitcoin, you can trade whenever because the market is open around-the-clock. Before, it was never feasible.
About DBS bank
DBS Bank Limited, also known simply as DBS, is a global provider of banking and financial services with offices in Singapore’s Marina Bay district. Prior to adopting its current shorter name on July 21, 2003, the bank went by The Development Bank of Singapore Limited, from which “DBS” was derived, to better reflect its role as a global bank. It is one of Singapore’s “Big Three” banks, together with OCBC Bank and United Overseas Bank (UOB).
What do you think about the claim made by a DBS strategist that Bitcoin is special regardless of price? And do you think we are putting too much emphasis on the price of Bitcoin rather than on its actual value? Share our information with your relatives and friends if you find it to be useful.
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