Bitstamp CEO says Bitcoin Could Start Trading Like Gold

Bobby Zagotta, Chief Executive Officer at Bitstamp USA, believes that there is currently “a little bit of de-risking” in the digital asset market as many investors are switching to stablecoins. He predicted that bitcoin would soon trade like gold if private cryptocurrencies are more widely adopted.

What does Zagotta see for the future of crypto?

Bitcoin supporters often liken the asset to gold. They argue that it can be used as a hedge against inflation or an alternative investment strategy in times of financial crisis. This is similar to how the precious metal has been seen for many years. Bobby Zagotta, Bitstamp USA’s CEO, supports this thesis.

CNBC interviewed a top executive who predicted that BTC would trade like gold when it becomes more mainstream. However, that has yet to happen.

Zagotta described the uncertainty in today’s financial markets. According to Zagotta, most investors are not interested in risk assets like digital currencies. He stated that the constant rise in prices for goods and services, as well as the COVID-19 pandemic and military conflict in Ukraine, have prompted many to invest in more volatile assets such as stablecoins.

He also mentioned President Joe Biden’s executive order regarding digital currencies. He pointed out that crypto investors are in millions in the USA. It is important that the government acknowledges this opportunity as valid and legitimate. Zagotta believes that the directive is a strong step towards clarity, which will in turn increase confidence among consumers.

He praised Biden’s decision not to embrace crypto, and to make the United States the industry’s leader worldwide.

“Its tone is, at least to my read, focused on innovation and competitiveness for the US. We think that is incredibly important. President Biden is not only saying that the US should accept crypto but also be a leader in this emerging global arena.”

Bitstamp’s Most Recent Endeavors

Bitstamp, based in Luxembourg is one of the most prominent European crypto exchanges. It allows you to trade between fiat currency as well as many digital assets such Bitcoin, Ethereum, Litecoin and Bitcoin Cash.

The company allowed its customers to trade Shiba Inu against both the US dollar or the euro at the end of 2021. Bitstamp, however, denied that it was embracing Dogecoin and explained that Tesla’s CEO, Elon Musk, had too influenced the first ever memecoin.

The trading venue announced earlier this year that it would offer stock trading products to traditional finance clients.

Bitstamp has signed a three year partnership with Immortals, an esports organization. The former will now act as the official digital assets exchange for the gaming company.