Risk Reversal Advisors’ founder, Dan Nathan, was of the view that US Government won’t allow corporations such as Tesla to give preference to Bitcoin over Dollar. He suggests that it wouldn’t be acceptable to US Administration in any case to let the world’s biggest corporations hurt US Dollar currency, which would adversely affect its reserves.
In his recent CNBC interview, Risk Reversal Advisors’ Founder, Dan Nathan, spoke about Bitcoin and the US Government’s future course of action regarding Bitcoin. His opinion regarding Bitcoin was in connection with the latest Tesla’s investment into Bitcoin and the use of crypto as a mode of payment.
According to Nathan, the world’s biggest business hubs such as Tesla, are essential for the safekeeping of the US Dollar reserve. If Tesla or similar companies would continue to invest in Bitcoin and other cryptocurrencies then the US Dollar reserve would be adversely affected. Furthermore, he stated that Tesla has also announced to receive payments in Bitcoin and other cryptocurrencies. He said that though this is a good decision but with regard to US Dollar this is yet another major setback.
Nathan was of the view that it looks absurd that US Government will let Tesla prefer other monetary sources over USD. This would be against the US Treasury’s policy as it would directly impact upon US Dollar reserve, he added. In addition, he stated that these days corporations have been consistently bringing in Bitcoin into their investment portfolios. However, in order to maintain US Dollar reserve, US Regulators will soon be taking measures. The only fear to a crypto is regulation and if regulations would try to regulate them then they will ensure dollars’ reserve, he opined.
Risk Reversal Advisors was founded by Nathan and involved in rendering consultancy services to financial institutions, corporations, and individual investors. Nathan has 10 years of experience as being a trader of options and equity. At that time he worked with well-reputed hedge fund entities like Cheyne Capita, SAC, Merill Lynch etc.
Nathan suggested that in his opinion US Government as well as US Treasury will not allow anything to go above US Dollar. If they will do so, then obviously US Dollar will fall miserably and will lose its status as reserve fiat globally.
He further suggested that both Tesla and Bitcoin are known assets that are inherently risky. However, both of them are currently defying the laws of gravity and have simultaneously earned billions of dollars in the form of investment. In particular, the majority of what has been earned in billions is earned in less than 6 months period. He suggested that all this multi-billion dollar investment is like a balloon full of helium. The balloon will go up and up until the helium ends and the law of gravity will pull the balloon through, stated Nathan.