Uncle Sam Is Very Clear About What Bitcoin Is

On June 2, Nexo’s co-founder and managing partner Antoni Trenchev took part in Messari’s 2020 Mainnet conference, addressing Goldman Sachs’ recent criticism of cryptocurrencies, and arguing the case for Bitcoin not only as an asset class in its own right, but as our generation’s gold.

Here are some key points from Antoni’s talk:

• US banks are reluctant to affirm crypto for 3 reasons: uncertainty around the Fed’s stance, the cost of legal and compliance, lack of experience in pricing and custody of BTC. Still, the IRS qualifies and treats Bitcoin as a “virtual currency.”
• Crypto lenders, like Nexo, providе ‘Earn Interest’ services on crypto, debunking Goldman Sachs’ claim that Bitcoin and gold cannot generate cash flow.
• While Goldman Sachs warns against BTC’s volatility of 76%, they endorse the far more volatile Tesla (116%).
• Strong investment in flightier, innovation-centered assets, like cryptocurrencies, will always require good risk management.
• Unlike other assets, Bitcoin and gold are already back to their pre-COVID-19 prices, demonstrating they are an excellent hedge against inflation and that, for all intents and purposes, Bitcoin is our generation’s gold.
• As quantitative easing programs worldwide bump inflation rates, Bitcoin’s “quantitative hardening” mechanism counteracts central banks’ money-pumping spree, affirming investors simply cannot afford to NOT own BTC.
• Nexo’s sustainable, recession-proof business model demonstrates that investment in cryptocurrencies is a viable option given good management.

A full recording of the presentation is available here:

We applaud the savvy investors supporting Bitcoin and wish them luck in their crypto endeavors.