The US. Treaty’s former secretary recently opened up about his take on the cryptocurrency trade, saying these cryptic assets have the potential to become digital gold featuring worldwide, even if the market demand and reach for these digital currencies remain limited. The statement comes as a surprise to many, as it was recorded when bitcoin and other cryptocurrencies were suffering losses continuously for many days. However, it proves to be a good alternative to Gold for the people looking to invest in a profitable asset, which is other than the daily workings of the government.
The statement suggests the possibility that these digital currencies will be present in the system of trades for the long haul and might prove to be a valuable asset for investors and traders across the globe. Lawrence Summers continued to say that if cryptocurrency values continue to rise and reach close to the value of the yellow metal, that will prove to be a significant bump up in the trade values and overall market capitalization. Comparisons between gold and the cryptic values are quite common in the trade, as the estimates suggest it might cross gold’s prices in the market soon.
Summers said cryptocurrencies will continue to exist in the foreseeable future but is not as likely to matter to the economy of the U.S.A. as the major currencies like dollars and cents within the financial and banking institutions. He is among the board of directors of Square Incorporation, which recently announced their profits have more than tripled with the increase in Bitcoin purchases through their cash application.
Recently, there were revisions in tax structures issued in The United States of America by the Treasury department bringing about many significant changes, including taxation on cryptocurrency trades, which now require to be reported to the IRS for transactions above $10,000. Summers commented on these proposals saying the Biden administration is doing a good job with these actions and will help regulate the cryptocurrency market a bit further to ensure its widespread use across the states.
These statements have left the traders and investors wondering whether they should invest in the uncertain course of trade by looking at the market trends or go with the speculations and insights of influential people like Tesla &SpaceX CEO Elon Musk and former U.S. Treaty secretary Lawrence Summers. Considering the cryptocurrency market is uncertain and constantly fluctuating around the clock, it will continue to be a niche trade, allowing traders to invest their finances and, just like the stock market, analyze the trends and make profits by investments.