Emotion Surround, Chief Executive Officer of leading cryptocurrency platform Constellation, shared with CNBC in an exclusive interview on May 30 that Bitcoin (BTC) represents "digital gold 2.0" and is poised to emerge as a powerful hedge against inflation, despite current market challenges.
According to Surround, Bitcoin's fixed supply of 21 million coins combined with its decentralized and permissionless characteristics will establish the premier cryptocurrency as the digital equivalent of gold in the financial landscape.
While expressing confidence in Bitcoin's evolution into digital gold, Surround acknowledged that the current environment for risk investments remains challenging. Nevertheless, he believes adopting a long-term perspective will help industry participants navigate through the prevailing bearish sentiment in the market.
He illustrated this point by referencing Constellation's own journey, noting that the company has maintained operations since 2018. Despite the cryptocurrency market's notorious volatility, Surround emphasized Constellation's resilience and ability to continue advancing even during difficult periods.
Explaining why focusing on the long-term growth of digital assets is crucial, Surround highlighted that crypto—particularly Bitcoin—has demonstrated exceptional performance as an asset class over the past five to ten years.
He further observed that the cryptocurrency ecosystem has grown significantly more complex compared to three or four years ago. Surround pointed to the expanding diversity of crypto traders and products as evidence that the sector is undergoing rapid maturation.
Surround suggested it's challenging to pinpoint the exact developmental stage of the industry. He drew an analogy comparing crypto to a teenager transitioning into a young adult, anticipating that the market will continue experiencing significant price fluctuations until full maturity is achieved.
In related developments, Jurrien Timmer, Global Investment Strategist at Fidelity, previously stated that the Bitcoin-to-gold ratio indicates BTC is currently in a solid accumulation phase and represents an attractive investment opportunity.
The cryptocurrency market currently appears to be forming a recovery pattern following substantial selling pressure over the weekend.
Bitcoin (BTC) was trading at $30,668.19 after gaining 5.81% in the past 24 hours, as of press time.
The altcoin sector also shows signs of recovery, with Ethereum (ETH) increasing by 7.08% over the last 24 hours to trade hands at $1,904.35.
