In an interview with Bloomberg TV: Bitcoin should be treated as a five to ten year investment says Kraken CEO
Despite the recent sharp correction in the cryptomarket, Jesse Powell, co-founder and CEO of the leading cryptoactive exchange Kraken, still claims that a bitcoin (BTC) will buy a Lamborghini (starting at $200k) by the end of the year, but he emphasized that people shouldn’t gamble with their much-needed money in the cryptoactive markets and instead treat BTC like an investment of five to ten years.
“Don’t invest more than you can lose. Don’t bet your rent on bitcoin with prices going up and down 50% in any given week. You really have to be able to think about that investment and keep it for five to ten years,” he said in an interview with Bloomberg TV.
According to the CEO, although BTC remains “an absolutely fantastic investment”, he doesn’t recommend putting 100% of your portfolio into bitcoin, especially when it comes to “money for food”.
“I would absolutely not put one hundred percent of my portfolio into bitcoin or not put rent money into bitcoin. And it’s definitely not your money for food. You don’t want people to survive on a plate of noodles,” Powell said.
He added that investors should not treat bitcoin as a “weekly trading” and “absolutely must not bet more than they can lose”. In your opinion, it’s still “a very risky investment unless you are approaching it with a long-term plan”.
Despite the risk warnings, Jesse Powell appears to remain bullish on the BTC.
“Personally, I’m researching how to sell my kidneys right now. Turns out it’s illegal. So much for my body, my choice”, he joked.
When asked about the recent price action, Powell said he remains unfazed and explained that this price volatility is just normal business in the nascent market.
“I’m not worried about this little dive. You know we’ve seen this over and over again. Crypto is a roller coaster. You have to be able to have an iron stomach to tolerate the ride. But you know that the gains are huge for those who can handle it”, he emphasized.
At 10:27 UTC, the BTC is trading at $36,849 and is down 7% in one day after another tweet from Musk. The price also dropped 43% from its record high of $64,805 (by Coingecko) reached in April of this year.
The CEO also shared his thoughts on Elon Musk’s influence on the market, as well as upcoming US regulations. According to him, the entire Elon Musk crypto phenomenon indicates that more and more people are seeking investment advice from non-traditional visionary figures as a result of diminishing confidence in the conventional system. When asked about upcoming regulatory changes, Powell said that “clear regulation would actually open the floodgates.” for institutional investors.
“I think there are a lot of big players waiting on the sidelines who are just waiting for that seal of approval … They don’t know how the regulators are going to handle it, so they’re just in this wait-and-see mode,” he said.
He reiterated that “all major players are already fully regulated.”, therefore, greater regulatory scrutiny would not be “nothing new for us”, and stated that additional regulatory clarity would be very helpful at this point.
As reported yesterday, Kraken has brought the mobile app to the United States. The development will allow Kraken customers to trade more than 50 cryptoassets directly from their phones.