Mark Mobius Now Thinks Bitcoin Is “Alive and Well”

There’s a renewed interest in cryptocurrencies. A lot of people are now looking closely at Bitcoin mainly because of the possibility of another bull run that could potentially beat the all-time high last December 2017. Bitcoin was able to surpass the $8,000 level.

There’s a lot of talks whether or not institutional investors are going to be involved this time around. Facebook has been meddling with cryptocurrencies nowadays. And this could mean a wider adoption of cryptocurrencies.

And now, you have someone like Mark Mobius, the co-founder of Mobius Capital Partners, now thinks that Bitcoin is “alive and well” in the future. In the past, he called Bitcoin a “real fraud”. It’s no surprise that Bitcoin isn’t well received by some old-school investors such as Warren Buffet and Mark Mobius. But Mobius seems to have a change of heart.

Mobius mentioned that “There’s definitely a desire among people around the world to be able to transfer money easily and confidentially”. He added that “ I believe Bitcoin and other currencies of that type are going to be alive and well”.

But is he investing in crypto? Now, that is a different story. He mentioned that “You have incredible volatility and, at the end of the day, you can’t chase one individual group or one organization that will keep track of what is going on”. He also pointed out the incident in 2014 wherein Mt. Gox lost millions-worth of Bitcoin.

Mati Greenspan of e-Toro noticed this change in Mobius’ opinion regarding Bitcoin. Greenspan said that “Many of those who are heavily entrenched in the old financial system are unsurprisingly unswayed by the benefits of crypto, but that’s changing rapidly”. Greenspan added that “The volatility is one of the most attractive qualities of crypto from an asset managers perspective. The idea of asymmetric risk allows us to use this unique and uncorrelated asset class to greatly increase or return on risk in any otherwise well-diversified portfolio”.

Is Bitcoin Going Up?

Could Bitcoin be going up and reaching $10K soon? As of writing the article, Bitcoin had a correction and dropped all the way to $7,296. Remember that Bitcoin reaching above $8K was a ten-month high for the cryptocurrency. It is possible that there were those who cashed in after Bitcoin hitting above $8K.

Though the RSI indicates that it is above 70, there is a chance that Bitcoin is going to have a difficult time reaching $8,500 which serves as the next key resistance.

Regulatory Clarity and Institutional Investors

One of the reasons why Bitcoin and cryptocurrencies haven’t been widely adopted is mainly due to the lack of regulatory clarity in the niche. But there are companies that are anticipating the entry of institutional investors. Xapo could soon be acquired by Coinbase. Xapo is one of the first Bitcoin custodians out there. There are reports that Xapo might be holding at least 5% of the total BTC that is in circulation.

In terms of regulations, there are developments in the industry. You have lawmakers looking to have a law that will eventually clarify the status of cryptocurrencies. As of now, the SEC has considered Bitcoin and Ethereum to be commodities and not as securities. However, for the rest of the other altcoins, these cryptocurrencies fell in a grey area.