Peter Wall, the CEO of leading crypto mining company Argo, told CNBC in an interview on May 30 that Bitcoin (BTC) is “gold 2.0” and will eventually become a hedge against inflation, even if it doesn’t seem like it at the moment.
According to Wall, BTC’s limited cap of 21 million coins and its decentralized and permissionless nature will help the flagship cryptocurrency grow into digital gold.
While he is sure BTC will become gold 2.0, Wall said the macro outlook for risky assets is still not great. However, he believes zooming out will help players in the industry overcome the current bearish sentiment in the market.
He gave an example of Argo, saying the company has been around since 2018. With the crypto market experiencing notable gains and losses to date, he noted that Argo has the muscle memory to keep going even when things get tricky.
Crypto is maturing rapidly
Explaining why eyeing the long-term growth of digital assets is important, Wall said crypto — BTC in particular — is one of the best-performing asset classes over the past five to 10 years.
He added that the crypto space is more complicated now than three or four years ago. Wall highlighted the increase in the number of crypto traders and products, saying the space is rapidly maturing.
Wall said it is hard to pinpoint the exact maturation stage of the industry. He added that he thinks of crypto as a teenager, growing into a young adult, and believes the market will continue experiencing wild price swings until it fully matures.
Meanwhile, Jurrien Timmer, the Director of Global Macro at Fidelity, previously said the Bitcoin-gold ratio indicates BTC is at solid support and is attractively priced.
The crypto market is currently staging a recovery following massive selling pressure over the weekend.
Bitcoin (BTC) was trading at $30,668.19 after gaining 5.81% in the day, as of press time.
The altcoin market is also showing signs of recovery, with Ethereum (ETH) gaining 7.08% over the past 24 hours to change hands at $1,904.35.