Appearing in an interview with Bloomberg, the CFO first commented on the current bitcoin price volatility. Most notably, one which has seen daily swings of 10 to 20 percent in either direction become the norm. Bogart claims that this is perfectly natural for a new asset with a fixed supply.

Discussing Bitcoin volatility, macroeconomy, Facebook and Goldman with @emilychangtv on @technology https://t.co/TOexjxEU24

— Spencer Bogart (@CremeDeLaCrypto) June 29, 2019

In-Line With Other Assets

He then likens Bitcoin to any other store of value assets, like art or vintage cars. These are rare commodities, which is why people hoard them. He states that the value of these assets increases not because they get more beautiful or perform better over time but because some unique painting will never be reproduced. Owners will then lock these assets in vaults to protect their value. Providing there is demand, the owner can, later on, trade them for an equal or higher price than they were originally bought for.

Bogart also believes that talk of Project Libra has contributed to Bitcoin’s recent price rally. However, he’s also concerned that underlying global monetary policy concerns are creating an increasing demand for non-correlated stores of value. Bitcoin, of course, falls into this category.

Project Libra Represents Bold New Ground

Continuing to discuss Libra, Bogart is optimistic despite how much of a “hugely ambitious plan” it is. He commends the social media giant on the consortium of partners, which includes VISA and Coinbase, among others. Ultimately, Bogart describes it as a “bold new vision” and agrees that skepticism is warranted. But, he believes that Facebook’s highly-anticipated asset will see a successful launch.

Despite this, the Blockchain Capital CFO believes the digital currencies most likely to succeed in the long term will be the those that operate on open, permissionless networks. He draws upon the often-repeated analogy of the internet versus the intranet to demonstrate this. JP Morgan Coin, for example, would fall into the latter category with Bitcoin, Ethereum, and other “true” crypto-assets being in the former. For Bogart, such open networks are advantageous because they allow any company to build out applications on top.

Do you think Project Libra will be a successful project? Let us know in the comments below.

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