Cryptocurrencies Still in ‘Darwinian’ Stage, BTC More Like Gold Than A Currency: Julius Baer Exec

During an interview with Christian-Ericsson, the chief strategist, as well as head of research and investment solutions at the Swiss private bank Julius Baer, believes that cryptocurrencies are still in the Darwinian stage.

According to him, cryptos are still believed to be in the Darwinian selection process whereby various business models are being tried and tested. But in the short amount of time they have been around, 11 years today, nothing has prevailed as the winning strategy.

Are Cryptocurrencies The Digital Version of Gold?

The strategist continued to express his beliefs on the state of the new asset-class, whereby he claims that a plethora of cryptocurrencies are still struggling with the reality that they have ‘limited or plateauing supply patterns’, that make them look more like gold, as in a store of value, rather than a currency used for spending.

However, Gattiker-Ericsson claims that blockchain technology, the buzz phrase for the last 2 years, has got a lot of potential applications. The main issue that remains to be solved, is the need to ‘transfer the trust’ people see in currencies, governments, and the central banks into the virtual and decentralized world.

Furthermore, he characterized distributed ledger technology (DLT), or blockchain, as the next frontier. Citing that Julius Baer was considering the possibilities of implementing it as well as acknowledged the technology would most likely ‘change the rules of the game.’

From Hater to Understanding the PossibilitiesPaths

In an interview in March of 2018 the CEO of Julius Baer, Bernhard Hodler, compared cryptocurrencies to gambling. But looking at the time of year, the cryptocurrency market was in full bear territory. Seeing wild swings in prices of all digital assets.

During that time, there were a lot of emphases that the banks were telling clients to be wary of and even ignore the FOMO that this new asset class brings with it. However, the company has now taken a different approach to the new tech. Recently, they announced their plans to provide their clients with digital services via a partnership with a Switzerland crypto bank, Seba Crypto.

Nevertheless, only time will tell what is ahead, and it’ll be interesting to see how the situation plays out. But one thing for sure, good times are on the way thanks to the existence and application of blockchain technology.

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