Circle startup CEO Jeremy Allaire expressed confidence that Bitcoin is attracting investors as a safe asset.
At CNBC's Squawk Box program, Allaire noted that despite the recent volatility of the first cryptocurrency, Bitcoin remains a popular risk hedge.
"Clearly a non-sovereign digital asset like Bitcoin is attractive to people who are interested in moving capital into a place where they can control it themselves. That underscores a lot of interest that's been there over time. It's the digital gold thesis and I think a lot of both institutional accumulators of Bitcoin, individuals, very specifically individuals in jurisdictions or environments where the intense concern about capital controls are there. That's like the underlying thesis and I think that has had an impact on it for the last 8 years,"said Allaire.
As for the recent volatility of the first cryptocurrency, according to Allaire, the point is in taking profits by a large number of people. In addition, the political instability in Hong Kong influenced the price of Bitcoin.
"You saw there were a lot of holders of digital assets whose broader portfolios were taking a hit and if they had gains, obviously bitcoin is up over 100% almost 200% over the past 9 months or so, that's a place to take some gains as well. Depending on the type of holder so to speak, you're going to see slightly different behaviors during these market moves,"said Circle CEO.
Note that in May of this year, the CEO of Circle called on the authorities to make the regulation of the industry more transparent, and the concept of cryptocurrencies - more clear.
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