Nicolas Bertrand calls for more space for cryptocurrencies

In an interview in the Italian newspaper Repubblica, Nicolas Bertrand (former executive of Borsa Italiana) spoke in defense of crypto and in support of the digital Euro.

Bertrand: the crisis facing the global market can be overcome with crypto

Bertrand, a former executive at Borsa Italiana and London Stocks exchange, explains how the commodities crisis and the economic climate we are in makes both the stock market and government bonds volatile. 

The situation Nicolas Bertrand describes is the following: 

“Today, there is great volatility. The Vix index is up to 33%, in 2020 it was at 15%, and the stock market is very nervous. Interest rates and profits are the two main determinants of prices, and this time with respect to the pandemic there is a lot of uncertainty about both variables.

On the one hand, inflation has risen, now the highest in 40 years, coal prices have risen 281% in one year, gas prices have risen 284%, wheat prices have risen from $6 a bushel to $11; as a result there is pressure on rates. But because of the macroeconomic situation and the many risks, corporate profits may also suffer, and this leads to uncertainty about dividends.

The result: investors cannot seek refuge in government bonds or the stock market, and all this fuels volatility”.

The uncertainty that investors experience could then find refuge in digital currencies such as Bitcoin, but even this asset seems to have lower volumes than pre-crisis: 

“The world of digital assets is still young and suffers what is happening in the traditional world; it is not yet autonomous. The number of wallets in the world, according to Statista 2022, is about 90 million as of today.

One trillion dollars of investment in digital assets is a drop in the bucket compared to global asset management. But technological innovation is moving forward”.

In short, crypto are the near future, but they still need to evolve and become widespread across savers’ wallets so as to broaden the base and normalize the asset even in the eyes of the ordinary person. 

The reasons why Bitcoin and crypto can be a lifeline for the future

According to Bertrand, the reason why the future of Bitcoin, and digital currencies in general, is bright has to do with their characteristic of being uncontrollable.

Unlike fiat currencies, which are manipulated as needed by the expansive or restrictive policies of Central Banks, Bitcoin, for example, is not alterable by outside intervention. 

As the Nobel Prize-winning economist, Friedrich Von Hayek, theorized back in the mid-20th century, he thought that currencies should not depend on Central Banks, which are fallible entities, but only on the market.

The potential of blockchain, according to the former Piazza Affari executive, is immense, and Central Banks, instead of demonizing BTC, should focus on the creation, development and dissemination of a Digital Euro, so as to be in step with other digital currencies and seize the opportunities that the market presents by addressing and involving even a plethora of new and very young investors who make the web their home. 

In this new digital age, the web becomes a parallel, metaphysical, but real reality, and the developing economy is a new source of liquidity that needs to be attacked to take advantage of new opportunities. 

Nicolas Bertrand’s conclusions on digital currencies

These days the Crypto Conference 2022 was also held at FICO Eataly World in Bologna, where Nicolas Bertrand himself, in a well-rounded speech, also returned to talk about crypto and the potential of this great strategic asset: 

“It is no longer possible to deny the importance of cryptocurrencies and digital assets, and not just based on numbers. We are facing a new industry with high innovation and disruptive potential. Especially compatible with all the things that the new generations demand.

It is enough to recall that in Milan 1 in 10 streetcars now has Bitpanda advertising and the biggest soccer and Formula 1 teams are sponsored by realities such as Binance, FTX, Bybit, Crypto.com and DigitalBits”.

Calling on institutions and insiders to have more courage and seize the opportunities of this world, considering how important it could be for countries like Italy.