Julius Baer’s chief strategist Christian Gattiker-Ericsson likened cryptocurrencies to gold more than actual currencies, citing similar supply patterns.
«We are still in this Darwinian selection process where different business models get tried and tested, but we haven’t seen something that was a clear winner,» said Gattiker-Ericsson, who is also the head of research and investment solution at the bank.
He notes one example of an obstacle to overtake fiat money is that cryptocurrencies «still struggle with the fact that they have limited or plateauing supply patterns, which actually make them more like gold than a currency,» according to a report from «Arabian Business».
Trust Needed
Beyond just technical issues, Gattiker-Ericsson underlines the critical need to establish confidence in such commodities in order to obtain sustainable value.
«Someone needs to be able to transfer the trust that is [inherent] in a currency, central banks and governments to put this into the virtual, decentralized world,» he explained.
Still, Gattiker-Ericsson is bullish about the broader emerging field of blockchain technology noting its groundbreaking potential.
«It will possibly change the rules of the game,» he said. «It’s still something we’re exploring. It’s like another frontier we’re approaching.»
