Wed | Jun 20, 2018

Bitcoin valuation unclear but blockchain is solid technology, says Citi rep

Published:Friday | January 26, 2018 | 3:51 PMSteven Jackson

 

Driss Temsamani of Citi Latin America defended the underlining technology for cyptocurrencies but stayed clear of speculating on the recent waning value of bitcoin.

Bitcoin surpassed US$19,000 last December but now hovers at US$11,250.

“Look at the fundamentals. What are the flows driving that valuation? My answer is that I do not have the answer,” said Temsamani, who heads marketing and strategic planning for Citigroup Latin America and the Caribbean.

He said, however, that whether the value rises or falls the underlining technology remains solid.

“I would say, look at the blockchain benefits and what drives it and the business models that are being built on block chain. Those have real business fundamentals,” Temsamani told the Financial Gleaner following his presentation on the topic at the JSE Capital Markets Conference last Thursday.

Ricky Lindo, a non-aligned local cypto-trader, argued Friday that the decline in Bitcoin was largely seasonal, saying it usually wanes in January, allowing persons to cash out.

Lindo says he has pumped thousands of dollars into the cyptocurrency market since last November, earning returns of over 300 per cent, just prior to fall-off in the price of Bitcoin. Lindo's portfolio gain comes from investing in over 30 cyptocurrencies in a bid to hedge his bets for a possible breakout in 2018.  

“Come for the gains, stay for the technology. When you realise it’s revolutionary you have two choices: Do I watch it happen or do I participate? Its still early days, however we can already see the potential of the technology,” Lindo said.

 steven.jackson@gleanerjm.com