24. September 2023

‚Cryptomoedas has a 50% chance of working, but everyone should have a bit‘ says XP Investimentos CEO

CEO of XP Investimento recommends that everyone should have some investment in cryptomoeda

XP Investments CEO Guilherme Benchimol has stated that cryptomyces have 50% of ‚going well‘ as a disruptive form of payment in the digital economy and has recommended that everyone should have a small exposure to the crypto market.

Thus, during a question and answer session promoted during a live of the newspaper Valor Econômico.

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Benchimol, who is also one of the founders of XP Investimento, one of the largest brokers in Brazil, said he is optimistic and pessimistic about cryptoactives.

„I have a part of myself optimistic and the other is pessimistic. My optimism is about the possibility of Bitcoin Hero becoming a means of payment (…) If this happens in the long term, I think that in fact we could have a transformation in the world financial environment. Obviously this is a long way from happening, but I think this path makes me optimistic even though I have many doubts,“ he said.

Everybody must have a little bit of cryptomorphism

Benchimol did not give many details of the considered ‚pessimistic‘ part that justify his ‚belief‘ of 50% in the future of cryptomorphs.

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However, the CEO pointed out that Bitcoin is similar to gold and that everyone should have an exposure to cryptomyces, but a small exposure due to market volatility.

„I think everybody should have some kind of exposure to this asset, but I would say that the chance to work is 50%, but as it is a volatile asset, this exposure should be small. I am not a specialist, I am giving my opinion as an individual investor“, he said.

This is not the first time that Benchimol ‚approaches‘ the cryptomoeda market.

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In 2018, together with its partners in the XP company, XDEX was set up as a company that offered exposure to the cryptoactive market without however allowing the ‚real‘ purchase and sale of cryptomites.

The platform however ‚did not placate‘ in the domestic market and ended up being closed last year.

Bitcoin futures facilitated over 11 million BTC in volume last year

Last year was volatile for Bitcoin and other cryptomorphs.

The Chicago Mercantile Exchange, or CME, has registered a significant volume for its Bitcoin futures trading product (BTC) over the past 12 months. „More than 2.2 million contracts were traded in 2020,“ a CME representative told the Cointelegraph. Each Bitcoin futures contract settled in cash at CME is worth 5 Bitcoin dollars.

The trading center recorded higher-than-normal figures as the price of Bitcoin warmed up in December 2020, after a fall from its historic 2017 peak of $19,892 on 1 December. „The average daily volume of BTC (ADV) reached 11,179 contracts (equivalent to 55,900 BTC) in December, an increase of 114% A/A [year-on-year],“ said the WEC representative.

The daily average of open contracts, or ADOI, „reached a record 11,108 contracts (55,540 bitcoin equivalent) in the fourth quarter, up 233% from the fourth quarter of 2019,“ according to a CME Group statement. Major players also appeared to trade, evident in the exchange’s count of major open shareholders, or LOIH. „The number of LOIH grew to a record 110 in the first week of December, indicating a strengthening of institutional interest,“ said the WEC representative.

WEC is planning a launch in February for its future Ether (ETH), which were initially announced in December 2020.

A number of major financial entities have expressed interest in Bitcoin in 2020, including MicroStrategy and Square, which has allocated large sums of capital to the first asset of encryption.