Libra has been Bitcoin's "biggest driver" says Spencer Bogart

30 Jun, 2019 | Updated: 30 Jun, 2019
by Will Heasman
Bitcoin
Libra has been Bitcoin's biggest driver says Spencer Bogart

According to Blockchain Capital’s Spencer Bogart, the main propellant behind Bitcoin’s recent surge in volatility, price swings has been Facebook’s incipient cryptocurrency, Libra.

Since the start of 2019, Bitcoin’s burst of volatility has seen it rocket up to heights not witnessed in over a year; its recent mood swings, however, have seen its once parabolic route upward, become a potentially rocky path lower.

Bitcoin does what it wants

Speaking to Bloomberg, Bogart addressed these recent price swings, allaying investor fears by noting that this recent bout of questionable volatility is essentially just Bitcoin being Bitcoin…

“For one, this is natural for any kind of asset that has fixed supply but fluctuating demand, particularly one like bitcoin that’s early on in its life cycle,” said Bogart.

Furthermore, Bogart stresses that this kind of price action is fairly common within store of value assets, suggesting that Bitcoin was in good company with assets such as high-end art and gold:

“People assume you’re buying this art because it’s beautiful, right? You’re buying this vintage Ferrari because maybe you’re going to drive it around. These things don’t adorn people’s walls. They’re not driven on the streets. They sit in vaults and in warehouses. So, they’re a store of value and a scarce asset because there will be no new Picasso paintings, [and] there will be no new vintage Ferraris.?

Is Libra good for Bitcoin?

During a recent panel at the Bitcoin 2019 conference Bogart spoke of Facebook's incipient addition to the cryptocurrency industry, and its impact on Bitcoins recent run, Bogart noted that Libra acted as the “biggest driver” in the last couple of weeks; adding that the general health of the economy, such as negative interest rates in government bonds and global monetary policy was also a catalyst for Bitcoins price action.

Interestingly he’s not alone in this latter assumption, with many believing that Libra might help the industry flourish.

One propagator of this theory is Anthony “Pomp” Pompliano who suggested that due to what he terms, token density theory – in essence, the more crypto initiatives, the better - Libra will actually prop up Bitcoin in the future:

“Based on the Token Density Theory, Libra is likely to create an influx of users for Bitcoin and other tokens if it successfully launches,” said Pomp.

What do you think? Will Libra drive the crypto market further? Let us know in the comments!

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