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Bitcoin Pro: Surge In Cryptocurrency 'Very Clearly' Related To China

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Bitcoin Pro: Surge In Cryptocurrency 'Very Clearly' Related To China

The cryptocurrency Bitcoin jumped nearly 10% and traded above the $11,000 mark Monday in part due to macro events in China, according to Circle CEO Jeremy Allaire.

What Happened

Bitcoin's surge is "very clearly" related to the currency conflicts and trade wars that dominated Monday's headlines, Allaire said on CNBC's "Squawk Box" Monday.

These type of events support Bitcoin's core purpose of being a "non-sovereign, highly secure digital store of value."

Allaire said he is seeing signs of a "softening" in attitude toward cryptocurrencies from multiple Chinese institutions. 

For example, a major Chinese court concluded that bitcoin is legal property in China, and one of the largest commercial banks, Bank of China, has started marketing the benefits of bitcoin, he said.

Why It's Important

For the first time in history, the global community has access to a non-sovereign asset that can be used to store value in Bitcoin, Allaire said. Bitcoin exists anywhere the internet exists, which is a powerful attribute in the face of market turmoil, he said. 

What's Next

The world is entering an era when nearly any entity can launch their own digital currency — and this is exactly what China is exploring, Allaire said. 

The Chinese government is looking to issue a sovereign digital currency based on its national currency and backed by its connection with internet and tech enterprises, he said. In part, this is a response to rival digital currencies, but is also a means to better interact with global consumers.

"China is way out ahead on this," he said. "I think the U.S. has fallen behind."

Related Links:

7 Things To Know Before Investing In Bitcoin

Bears Sharpen Claws As BTC/USD Finds Support

Posted-In: Bitcoin CNBC digital currencies Jeremy Allaire Squawk BoxCryptocurrency Markets Media Best of Benzinga

 

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