CSO of alternative financial services company CoinShares shares her thoughts on how Bitcoin can break free from risky assets.
in the last few weeks Tensions in Europe are escalating to sovereign aggression and war.
We have seen most Western countries boycott Russia for invading Ukraine. Including expulsion from SWIFT, pulling businesses out of the country, cutting all kinds of economic ties, and so on. Cryptocurrency They were also asked to stop serving Russian customers.
amid this turbulent economic and political climate Basically, Bitcoin and cryptocurrencies which is touted as a non-political and non-traditional financial alternative asset.
Before we get into what Meltem Demirors, Chief Strategy Officer at CoinShares, let’s explain what is Risk Off and Risk On.
Risk on and Risk off are tools that describe risk conditions. It is an indicator of the risks that investors can take depending on the market and economic conditions at that time. Risk on is a situation where the market conditions at that time were relatively stable Investors will be able to take a lot of risk. and often invest in risky assets
Whereas risk off is a situation in which the risk is high. or unstable market conditions high volatility Investors will then invest their money in safe assets. at less risk
to talkwith Bloomberg Crypto CoinShares Chief Strategy Officer – Meltem Demirors – summed up the past few weeks on what’s going on in the world. Without limiting the challenges to the war in Ukraine only.
I think it’s been a very interesting couple of weeks. Not only have we had this conflict in Western and Eastern Europe, but recently we have had Canadian truck drivers protests and their access to banking has been cut off. […] It has caused many discussions about Bitcoin and cryptocurrencies.
She saw that there was a growing awareness around the world that “For the first time, citizens who have been victims of war from the powerful find that they actually have a choice.”
“Bitcoin and cryptocurrencies It is global money that has nothing to do with politics. We are not only seeing increased trading activity in Ukraine or in Russia. But also many trading activities coming from the United States. While people were watching what was happening all over the world. And perhaps this is where Bitcoin is no longer a risky asset. But it can become a risk-free asset over time.”
Of course, Demirors also explained that a few weeks Certainly not enough to prove this relationship in the final. But she hopes the data from the months and years to come will help make this happen.