Bitcoin Is Described As “Special” By DBS Bank Despite Its Erratic Haracter
Bitcoin – The year 2022 has been difficult for the cryptocurrency market, which has collectively lost the equivalent of $1 trillion in value. As this year is on track to break the previous record for the value of cryptocurrency stolen, which presently stands at $3 billion, security issues have also come to light.
Despite worries about ongoing market volatility, DBS thinks Bitcoin (BTC) will continue to offer a “unique” potential since it allows for continuous trading without the requirement for a third party to handle transaction clearing, as per a report published by finews.asia on October 14.
DBS investment strategist Daryl Ho said:
“I think BTC is still unique whether the price changes or not. If we just look purely on a price basis, you will see a lot of volatility and that doesn’t inform you a lot about what benefits it actually brings.”
Bitcoin’s unique factor is its usefulness
According to Ho, the distinctiveness of Bitcoin is not based on its price but rather on its usefulness, which enables money to be transferred in a decentralized way without the need of a central counterparty to clear the deal.
“If you were holding onto certain rationed assets as the start of February, you may not have been able to liquidate them at will because sometimes, exchanges were closed,» he explained.”
“But the Bitcoin market was open 24/7. So there was an avenue for you to raise cash and liquidity, if necessary. Before Bitcoin, there has never been any avenue that could do this.”
DBS has been steadily expanding its operations in the asset class, particularly through its DBS Digital Asset Exchange (DDEx), which saw transaction volume increase to twice what it was in April in June of this year.
In addition to providing access to its institutional, family office, and private banking clients, the bank has only recently started to offer it to its wealthier clients.
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