In a June 16 interview with Bloomberg, Kraken CEO Jesse Powell said other level solutions would make using Bitcoin (BTC) as simple as the US dollar in time.
In addition to improving the utilitarian nature of bitcoins, Powell suggested that the final time for institutional investors to join the ship would depend on the herd's mentality, and recommended to form itself as a hedge against the current manipulation of the Federal Reserve in dollars.
Bitcoin will improve to match the store's value
Powell criticized Bitcoin's success as a means of preserving its value. The predictable nature of the issue saw many crews at BTC as a hedge against regular asset classes, and Powell suggested that he eventually thought he would get ahead of gold.
However, as for gold and even cash, he said that people do not need to convert the “physical” bitcoin to blockchain. Money programs like PayPal and Venmo allow you to move banknotes in intangible form, and Level 2 solutions over time will provide easy-to-use tools for similar interactions with bitcoins:
“Very soon, all the technology that underpins Bitcoin will disappear, and it will be like the US dollar, since nobody understands how it works, but everyone uses it.”
Institutional investors like to follow the pack
Powell added that the last three months have witnessed a huge influx of new accounts from all types of investors: hedge funds, money managers, retail investors and today's traders. But he said the long-awaited flow of institutional investment will depend on the herd mentality.
Dear fund managers like Paul Tudor Jones who up to 2% of his portfolio is owned by Bitcoin, will encourage others to join and eventually form a critical mass of institutional players.
Regarding the possible manipulation of whaling markets in cryptocurrency, Powell noted that traditional markets are also being manipulated:
“Look at the Federal Reserve, which buys unwanted bonds from bankrupt US companies. This is a joke. The market is being manipulated. They print trillions of dollars to increase the value of traded shares. You can no longer buy anything in dollars. Inflation will soon get out of hand. Personally, I want to buy bitcoin as a tire from this inflation.