CoinList co-founder and CEO Andy Bromberg was on CNBC’s Squawk Alley this morning talking about his view on the state of cryptocurrency. Bromberg believes bitcoin price will starts to decouple from other altcoins in the next couple years. The catalyst could come from the bust of the current financial system, especially in the wake of the recent Deutsche Bank layoff news.
Check out clip from CNBC below, we’re also including the transcript in case you can’t see the video. All rights belong to CNBC and please refer all credits to CNBC.
Deirdre Bosa: Bitcoin, trading up over two hundred percent since the beginning of the year, with investors continuing to monitor Facebook’s move into the market with Liberal already facing some early regulation scrutiny.
But how much is crypto filling the void left by the traditional financial sector? Joining us now. CoinList co founder and president Andy Bromberg.
Andy, Thanks for joining us today when we talk about regulation filling the void. This was really interesting to read that there’s been comparisons to what we’ve seen this week, the big layoffs at Deutsche Bank, thinking that maybe this could benefit cryptocurrencies in some ways. How does that play out?
Andy Bromberg: I think you’re absolutely right. I think what we’re seeing here is that existing financial systems are struggling a little bit and going through these booms and busts and crypto, maybe countercyclical there.
What we’re seeing is this Bitcoin run up and broader Cryptocurrency run up well. The larger financial sector is having some issues. I think it’s indicative of what we’re going to see moving forward as bitcoin becomes more and more anti correlated with the existing financial systems. That’s a really exciting concept. Crypto is a hedge against broader economic downturns.
Deirdre Bosa: But Andy, we’ve been talking all week about some of the regulations, even with Cryptocurrency like Libra, if you want to call it a crypto currency, so how does it get there? still feels like a very long way off.
Andy Bromberg: I agree with you. It feels like we’re a long way out in the lead, and here was right. That space may be the next Internet Bitcoin and blockchain a maybe the next Internet, too. But that means that it’s at its earliest stages and regulations unclear. Right now, there’s a lot of questions up in the air.
Just yesterday, the SEC and Finn were released a joint statement detailing some of the open questions they have around Cryptocurrency, and that’s a big step forward that they’re willing to say these of the open questions. But all of those questions would be resolved before we really get to a place of finality here on the regulations around Cryptocurrency.
Morgan Brennan: Andy. I want to go back to this idea of crypto and Bitcoin as a hedge against other asset classes. How much has that contributed to run up? We’ve seen recently in the prices of Bitcoin it’s in these other cryptocurrencies. And how does that play out as you get more coins that our asset back there being seen as utilities, for example?
Andy Bromberg: Yeah, that’s a great question. I think again, we’re in the early days of this asset. That means that we see big booms and big busts, and a lot of that is driven by the narrative around the space. When we start to see mo mentum like we did in the past month or so around Bitcoin, it starts to drive up more and more as more interest pours in, I think, as the space matures, see more Asset back tokens like you said, we’ll start to see that even out a little bit, and we’ll start to see assets within the crypto space become uncorrelated from each other.
Right now, the crypt of space is highly correlated. We see Bitcoin rides the same time Ethereum and most other tokens do and fall at the same time. And I think that uncorrelation with these different assets start to rise and fall on their merits will be really interesting. Is that starts to happen in the next couple of years?