Bitcoin Skeptical Bloomberg Analyst Debates In Latest TBEN Crypto Duel

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In a recent video debate, Bitcoin skeptic Frances Coppola debated Bloomberg’s senior commodities strategist Mike McGlone about the economics of Bitcoin, market manipulation and the forecast for 2021.

Coppola is skeptical of Bitcoin’s success as a store of value due to its high volatility which she believes is a direct consequence of the asset’s fixed supply rate.

“With a fixed rate of increase in supply (…), the only thing that can adapt to changes in demand is the price,” she explained. Fluctuations in demand mean Bitcoin’s volatility is here to stay.

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McGlone, on the other hand, believes that Bitcoin’s fixed supply will cause volatility to drop over time.

“The simple rules of the markets are that you have the supply and the demand. Both are uncertain. This is what creates volatility, ”he explained. “If you have a certain supply schedule, that means 50 percent of that volatility input is already gone (…) So according to the laws of economics, Bitcoin’s volatility should go down.”

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Another topic of debate has been the claims that Stablecoin Tether could be used to manipulate the Bitcoin market. According to McGlone, these claims “don’t make sense,” given that Tether’s market cap is only a small fraction of Bitcoin’s.

“It’s like saying the little fish kicks the whale,” he said.

Coppola disagreed, pointing out that Bitcoin’s market cap includes a large amount of coins that are not in circulation. “What Tether influences is the flow, not the stock,” she said. “So I think Tether could really change the price.”

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Choose your side and discover the full debate on our Youtube TBEN channel!