Mark Yusko, founder and CIO of Morgan Creek Capital, expressed his upbeat opinion on Bitcoin (BTC) and the cryptocurrency markets in a recent interview with CNBC, claiming that they had entered a bullish phase. As a result of the four-year cycle that surrounds Bitcoin’s halving events, Yusko thinks that the current bull market in Bitcoin is simply the beginning of a larger one.
The halving of Bitcoin, which takes place every four years, involves changing the block rewards recorded in the blockchain. According to Yusko, the next halving event is anticipated in April, culminating in a period of accumulation before a potential speculative blow-off. This blow-off is probably going to be followed by an overreaction to the downside, sometimes known as “crypto winter.”
Yusko highlights Bitcoin’s main application, proposing it as a replacement for gold as the base layer of money. He sees Bitcoin as a type of digital gold that has the ability to fulfil the purpose that gold has served for centuries. Forex has traditionally been based on gold, with fiat currencies being backed by debt that has been built on top of it. According to Yusko, the benefits of Bitcoin’s permanence, divisibility, and immutability make it suitable for acting as the foundation of new money at some point in the future.
Although Yusko is bullish on Bitcoin, he views Ethereum and other blockchain-based applications as viable alternatives to fiat money rather than as direct competitors to Bitcoin’s role as digital gold.
