Venture capitalist: Bitcoin and Ethereum could become more reliable macro-indicators than Stocks & Bonds

BitMEX Debuts Ethereum Quanto Futures With Fixed Bitcoin (BTC) Multiplier

Since the outbreak of the COVID-19 pandemic, the financial world has been volatile, to say the least. In the last several months, markets have seen historic rises and drops. Just last week, CNBC reported that although the Dow Jones experienced a 400 point rise, Wall Street clinched their biggest weekly loss since March.

A lot of experts are blaming the crazy moves on government interventions. Many of the same experts are predicting that these haphazard interventions will eventually lead to an overall economic downturn.

Chris Burniske, current partner at Placeholder Venture Capital and formerly the lead at ARK Invest thinks cryptocurrency is about to flip the script on the traditional financial space. For years the joke has been that digital assets like Bitcoin and Ethereum are not wise investments due to the severe volatility the crypto markets experience. But according to Burniske and many others, the fun rides being experienced by newbie day traders may come crashing to a halt. 

“$BTC & $ETH could become more reliable macro-indicators than stocks & bonds, given all the government meddling in the more traditional markets, not to mention global 24/7 liquidity in crypto.”

Burniske still acknowledges the difficult swings that the crypto world will experience, but is confident that digital assets are headed upwards. 

“The longer $BTC & $ETH fade here the more likely we take another leg down to test key supports, despite the strong fundamentals of both.

I would see this as more macro-jitters driven than specific to crypto’s future.

Don’t mistake short term volatility for the long term trend.”

The reason Burniske and others are confident in crypto adoption and growth is the emergence of DeFi. People are realizing that gains can be made simply by holding certain cryptocurrencies and this sentiment will lead to wider use. 


Just a few days prior to his comments on the budding reliability of cryptocurrency, he expressed his opinions on the robust future of DeFi in the blockchain industry. 

“If you think #DeFi will have a smaller impact on $ETH than ICOs, you aren’t paying attention.

The ICO boom flexed #Ethereum’s ability to perform 1 financial service: early-stage capital formation. 

#DeFi will flex Ethereum’s ability to perform *all* financial services.”

The belief Burniske and many other experts hold is that DeFi will provide a solid ground-level use case for cryptocurrency that will usher in an era of stable growth. It makes sense that people currently on the outside looking in will be drawn to a way to earn interest at a much higher rate than they’re used to.