26/03/2021
Dan Nathan, founder of Risk Reversal Advisors, says the U.S. government will not continue to allow companies like Elon Musk’s Tesla to replace dollars with bitcoins. They will prevent the dollar from being eliminated as the world’s reserve currency, which could happen if companies continue to replace dollars on Bitcoin’s balance sheet.
US government won’t allow bitcoin to be replaced by dollars, says head of risk and return advisers
Dan Nathan gave his views on the future of bitcoin in an interview with CNBC last week. His comments follow reports that Elon Musk’s Tesla is investing $1.5 billion in bitcoin and plans to allow cryptocurrencies as a means of payment for its products in the near future.
Nathan is a director of Risk Reversal Advisors, which provides advisory services to investment banks, investment advisors and private companies. In the late 1990s and into the 2000s, he worked as an equity and options trader at SAC Hedge Funds, Exis, Cheyne Capital and Merrill Lynch’s equity derivatives group.
He began by saying that the US Treasury and the US government will not let the situation get out of hand as companies begin to replace literal dollars with bitcoins in large part. Asked what exactly regulators can do to prevent companies from including bitcoin on their balance sheets, as Tesla has done, Nathan exclaimed:
You can arrange it. That’s what they can do.
He added: We’ve seen this before. We have seen that to a certain extent. The founder of Risk Reversal Advisors confirms: I’m just telling you that they will not allow the dollar to lose its status as the world’s reserve currency, and I’m pointing out that that’s basically what’s happening with companies increasingly replacing dollars with bitcoins.
Nathan continued: We’re in a bit of a euphoric state right now, adding that Tesla and bitcoin as two risky assets have together made over a trillion dollars in the past six months, all based on hops.
The Council Member then gave his opinion: All of these people who make a lot of money on these two things recognize that at some point there has to be some gravity, and these two together create a very difficult situation when they coincide, and the ripple effect that we’re going to see on the currency markets and the financial markets and things like that can be significant. No one is talking about that right now. There are no more bitcoin skeptics.
Following Tesla’s bitcoin investments, analysts expect a stream of companies to follow suit and add bitcoins to their balance sheets. Twitter Inc. has previously said it is considering adding bitcoin as a cash reserve, as well as paying employees and vendors in cryptocurrency.
What do you think of Nathan’s opinion on Bitcoin and Tesla? Let us know your comments in the section below.
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