Silicon Valley startup CEO: Bitcoin is a good long-term investment, and large fluctuations cannot reflect its value

Recently, Michael Dunworth, CEO of financial technology startup Wyre, said that his financial advisors believe that Bitcoin must be considered an asset class.

As described by Bitcoin developer Andrew DeSantis,

“Bitcoin is a decentralized timestamping and messaging protocol when implemented and stored in a store of value system.

Therefore, depending on the use case, Bitcoin can be used as digital gold, a settlement network, and digital cash or currency.

Safe-haven assets

Institutional investors and prominent traders in China and other countries use Bitcoin as a risk-averse asset and wealth management product (WMP). Amid economic uncertainty and the need to curb monetary inflation, investors prefer to use Bitcoin to protect their wealth and assets. Chamath Palihapitiya, an early Facebook investor and owner of the Golden State Warriors NBA team, has already stressed this.

He said:

“Once again, I reiterate my belief in Bitcoin. It is the ultimate insurance policy specifically designed to protect against and curb monetary inflation.”

Dunworth, who recently helped Wyre secure $5.8 million in Series A funding led by Amphora Capital, is optimistic about the prospects for Bitcoin and recommends that financial advisors consider the above qualities of Bitcoin and consider Bitcoin as an asset class.

Most importantly, Bitcoin is one of the few currencies or assets that is completely dependent on the market, while most public market assets are directly affected by reserve currencies and the performance of the global economy.

Volatility

During the network’s bitcoin scouting tour, Dunworth said: Australian financial advisers attended a four-day fintech program with the $1.4 billion Funds of Associates (FUA).

“Bitcoin has great prospects and has a great impact internationally. If someone told you in 1991 that you could invest in a project called “the Internet,” it would be the same as what we know about Bitcoin now. We are in the same early stages of Bitcoin as the Internet.”

Dunworth reiterated that while Bitcoin’s short-term volatility remains high, its overall price swings indicate that a broad range of clients and investors are investing in it for the long term.

Dunworth said,

“A lot of people say the bitcoin price is very volatile in the short term. But if I were managing a fund for a client, I would say it’s a good long-term investment.”

Bitcoin volatility is a measure of growth and does not accurately describe the value of Bitcoin.

Since Bitcoin has a fixed upper limit of 21 million, as long as the demand for Bitcoin remains or continues to grow, the price of Bitcoin will continue to rise.

Although many experts have previously mentioned that Bitcoin’s high volatility is a negative factor for digital currency, technically speaking, Bitcoin is still in the early stages of development.

Over time, Bitcoin’s volatility will decrease as scaling solutions are implemented.