Jeremy Allaire, the CEO of crypto payment company Circle recently stated that the reason behind bitcoin’s growth is macroeconomic.
While interviewed on CNBC, Allaire pointed out that bitcoin has more or less become a safe haven. He stated that the most popular cryptocurrency is looked as the most reliable option during these times of macroeconomic and geopolitical uncertainty.
A lot of macroeconomic factors are in play
Allaire mentioned that there is an obvious correlation between bitcoin recent gains and the devaluation of the Chinese Yuan.
Not a single expert can now doubt that bitcoin is playing a large role in the global macroeconomic cat and mouse games. The trade wars between the China and the United States, the rapidly-rising currency conflicts are all indicators that a highly secure digital store of value is essential.
During the interview, Allaire was asked to share his opinion on the growing concern of many western financial experts that the rising price of bitcoin is mainly due to many Chinese investors dumping the yuan.
Allaire stated that he believes that China is indeed a significant factor in the bitcoin price surge and the country is gradually changing its stance towards bitcoin and other cryptocurrencies.
Nevertheless, he believes that the process will be long and hard and many of the Chinese investors dumping their yuan are also looking to flee the country.
Allaire also pointed out that Huobi has created an entire Communist branch as a part of legal obligations in order to develop closer ties with the Chinese government. This is due to the Chinese law requiring every company with more than 3 Communist Party members to create its own branch.
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