Dan Nathan says the US Government will not allow the replacement of Dollars with Bitcoins
In an interview with CNBS last week, Dan Nathan offered his view on the future of bitcoin. He also spoke about Tesla’s $1.5 billion Bitcoin investment and using it for payments for products.
Nathan is the principal of Risk Reversal Advisors. This firm offers consulting services to investment banks, investment advisors, and to private companies. Nathan spent his 1990s and 2000s as an equity and options trader at hedge fund firms SAC, Exis, Cheyne Capital, and within the equity derivatives group of Merrill Lynch.
He also said that “the U.S. Treasury and the U.S. government” will not “let this thing get out of hand where literally corporates are starting to replace dollars to a large extent” with bitcoin. He was also asked what the regulators could do to stop corporations from putting bitcoin in their balance sheets as Tesla did, for that he responded as,
“They can regulate the hell out of it. That’s what they can do.”
Furthermore, he added that “We’ve already seen that. We’ve seen it to some extent.” He also affirmed that “I’m just telling you” that they are not “going to let the dollar fall away from being the reserve currency for the world,” elaborating that this is what is happening with corporations replacing dollars with bitcoin.
He continued: “Right now, we are in a bit of a euphoric state,” adding that both Tesla and bitcoin as “Two risk assets that have gained more than a trillion dollars combined in the last six months and it’s all based on hopium.”
Da Nathan also suggested that,
“All these people, who are making a ton of money on both of these things, just understand that there’s got to be some sort of gravity that takes hold at some point, and the two of them combined makes for, I think, a very difficult situation if they both start going down together, and the ripple effect that we’ll see across currency markets, financial markets, and the such, could be great. No one is talking about it right now. There are no more naysayers in bitcoin.”
According to the analysts, after Tesla announced its BTC investment, many companies will begin doing the same will put bitcoin in their balance sheets. Twitter Inc. also announced that it be adding bitcoin as cash reserves and paying its employees and vendors in digital currency.
