Local crypto boss says US banking turmoil means it's bitcoin's 'time to shine'

Przelozny states that the current economic climate is exactly what bitcoin was created for. It was born out of the [GFC], and we are now seeing echoes again. I believe this is the right time for bitcoin’s to shine.

The price of bitcoin has risen more than 35% in the 10 days following the collapse of Silicon Valley Bank. It is currently trading at $42,000.

Przelozny, who has an exchange with more than 250,000 users and over $1 billion in assets, said that the crypto market is still subjected to the US Federal Reserve’s interest rates decisions. However, he believes that this will change in the coming months.

“Right now, we are still very much dependent on the US monetary policy decisions. He says that interest rates will eventually reach a peak. “We also have the bitcoin halves next year so I believe the crypto market will turn in the next twelve months.”

Crypto’s rise in face of current market turmoil is a sign that the asset class has changed its behavior. It has been rising and falling in lockstep with traditional markets over the past 18 months.

Bitcoin supporters believe it is similar to digital gold and can be used as a hedge against market volatility and high inflation. Przelozny shares this view.

He says, “If we get into another cycle of quantitative easing, which people expect, because it’s necessary to save the US banking systems, I think there’ll be people who start to see bitcoin as what it really is,” he said.

Independent Reserve completed the $3 million acquisition of bitcoin.com.au, a local crypto trading company. The main asset was the company’s domain name.

“The current economic climate is exactly what bitcoin was designed for.”
Adrian Przelozny is the head of Independent Reserve

Initial negotiations were made with Banxa, an Australian-based crypto company. Independent Reserve purchased the domains coinloft.com.au as well as buyabitcoin.com.au. Banxa will also be taking a small equity stake at the crypto exchange as part of the deal.

Przelozny believes the purchase will lower the entry barrier for potential crypto buyers in Australia. He says he believes that many prospective buyers are intimidated by the complexity of crypto trading platforms.

Recent events such as the collapse of US crypto-exchange FTX in December 2017 have shaken investor confidence. This has prompted a number Australian exchanges, including Independent Reserve, to publicly pledge to show proof of their assets.