Jeff Currie is the global head of commodities research at Goldman Sachs’ investment research division, and on Tuesday he appeared on CNBC’s “The Coin Rush.”
In the interview, Currie weighed in on the stability of Bitcoin and other cryptocurrencies, comparing the crypto market to that of gold.
“The key to creating some type of stability in the market is to see an increase in the participation of institutional investors,” Currie said.
“Right now they’re small. There’s about $700 billion of money in Bitcoin right now, and of that roughly 1% of it is institutional money.”
Currie’s Take On Cryptos: The value of a single Bitcoin or other cryptocurrency is calculated by the value of the market over the number of coins, Currie said.
If the crypto market, currently valued at about $1 trillion, was to grow to $2 trillion, “you’d just do the simple math,” he said.
The path to this equilibrium is full of volatility and uncertainty, Currie said.
When asked by CNBC if he had a recommendation at the moment, Currie said: “Given the fact that we’ve seen a big run up in these markets, I’m not going to take a strong view here, but this morning the traffic seems to be flowing one direction.”
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