Barry Silbert, the founder and CEO of Grayscale Investments and Digital Currency Group (DCG), has recently expressed his bullish outlook on Bitcoin in a Grayscale investor call on Feb. 12. He addressed various matters related to digital assets, such as how Bitcoin influences the movement of wealth among generations, decentralized finance, central bank digital currencies (CBDCs) and stablecoins.
A federal regulator issues and controls CBDCs, which are digital currencies. CBDCs are different from cryptocurrencies like Bitcoin because they represent digital forms of fiat money. Many governments have been developing and exploring such projects, but no global jurisdiction has launched a CBDC yet. While China is reportedly getting ready to test its CBDC soon, at least 10% of central banks are expected to issue a CBDC for the general public in the near future.
Silbert said that central banks that create their own digital currencies could be empowering Bitcoin by building the infrastructure for institutional interest. He claims to have purchased his first Bitcoin in 2012, three years after the first block on the Bitcoin blockchain was created. He thinks that the same infrastructure that is used by the widespread adoption of CBDCs could benefit Bitcoin and other non-central bank cryptocurrencies: He said: “In the future we may have 80 different CBDCs. And if that occurs, it would spark a huge amount of investment in operators of financial systems where basically every financial institution would then need to be able to securely store and transact CBDCs and, you know what, if they actually construct that infrastructure, that same infrastructure could be utilized for non-central bank digital currencies like Bitcoin.” He also stated that he was sure that central banks will require users to use and engage with the existing financial systems and will not restrict the supply of the digital currency. Silbert pointed out Bitcoin’s limited supply feature, saying: “Central banks love to print money.”
Silbert is one of the most influential figures in the cryptocurrency industry, since he leads two major companies that are involved in various aspects of digital assets. As of Feb. 12, Grayscale Investments is the world’s largest digital asset manager, with more than $40 billion in assets under management. Various crypto-related projects, such as Foundry, Genesis Trading and CoinDesk, are invested in by Digital Currency Group, which is a venture capital firm.
For a long time, Silbert has been vocal about his bullish views on BTC and other cryptocurrencies. He has also been critical of some projects, such as Ripple (XRP), which he considers to be centralized and not a true cryptocurrency. He has also forecasted that most altcoins will go bankrupt in the long term, while Bitcoin will continue to dominate the market.
In conclusion, Barry Silbert is a prominent figure in the cryptocurrency industry who believes that central bank digital currencies are good for Bitcoin. He maintains that CBDCs will create the infrastructure for institutional interest in non-central bank cryptocurrencies like Bitcoin. He also points out that Bitcoin has a limited supply feature that makes it superior to fiat money. He leads two major companies that are involved in various aspects of digital assets: Grayscale Investments and Digital Currency Group.