Bitcoin Boom Due to Long Accumulation Period, Says Circle CEO

Jeremy Allaire, CEO of Circle, says that the Bitcoin boom is no surprise. In a recent interview with CNBC, he said that Circle’s own activity among its user base pointed towards a bottom in December 2018. It was then that many long-term institutional investors began to build “significant positions in the core digital assets.” This continued through Q2 of 2019 — which people began calling the ‘Crypto Spring.’ Then, there were other reports that began to delve deeper into the question of whether or not Bitcoin had bottomed. Both Adamant Capital and Delphi Digital released reports in May of this year arguing that the bottom was in. However, there’s another aspect that’s pushing this boom which Allaire mentions in his CNBC interview: the growth of non-sovereign money. It’s a new concept which Bitcoin has spearheaded. Essentially, this is the first time we have the chance to create a global, apolitical store of value which can be a medium of exchange attached to no legacy financial system. Allaire stresses, though, this won’t be a ‘winner-take-all’ scenario. Crypto-finance accounts that hold many kinds of digital assets will be commonplace and financial firms will be able to virtually send and receive all of them. Although stablecoins are an interesting case-study in and of themselves, Allaire is really betting on the growth of non-sovereign money. It is, at heart, what the ‘bitcoin thesis’ is all about. Censorship-resistant, highly-secure digital assets like Bitcoin will flourish as this becomes more apparent. It should be noted, however, that Allaire is a new convert to Bitcoin. In 2016, he claimed that nobody would be using Bitcoin “in five or ten years.” Is Allaire just jumping on the Bitcoin bandwagon now because of its price growth? Or are his observations valid on a more fundamental level? Let us know your thoughts below.