Luno CEO: Bitcoin is Dominated by Speculation, Over 90% of Usage is Driven for Investing

Most people know that there is some degree of manipulation in the crypto market. The major question is generally: how much of it there is? Marcus Swanepoel, the CEO of Luno, believes that it is a lot, way more than actual trading, in fact.

According to his recent interview with CNBC, only 10% of all the Bitcoin holders actually use it for “real” transactions. 90% of the users are actually engaged in speculation instead of healthier market activities. They don’t care about BTC and only want to buy it when prices are low and sell it when they’re high.

To him, 90% of the people in the crypto market are speculators trying to get some money by trading the asset. Only 10% of BTC’s user base would have a real long-term view of the asset.

Swanepoel Is Not Completely Against Cryptos

Despite the bold claims that most crypto trading is actually speculation, Swanepoel seems to acknowledge that the market definitely has some potential as an investment. According to him, it really makes sense for people to invest in cryptos, but they need to measure the risk well.

If they only invest a small portion of their assets, they can reap huge rewards later. If the prices go down, at least they have not lost too much money.

His views are shared by many people in the market such as Anthony Pompliano, the CEO of Morgan Creek Digital, and Nelson Minier from Kraken. They believe that while there is still some discussion on whether Bitcoin is really a “safe haven” asset or not, it does not make any sense to have zero exposure to it, as investing at least 1 or 2% of your money on it is a great idea.

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Author: Hank Klinger

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