Nexo’s founder: ‘Cheap money’ will persist and will be ‘beneficial to crypto’

As monetary policy tightens, the issue of whether crypto assets represent a fundamental shift or merely a danger is one that is increasingly being discussed in the industry.

Neocoin lender Nexo’s Antoni Trenchev examined the correlation between the crypto and traditional financial markets during an interview with CNBC on February 7th, 2019.

On the Federal Reserve (Fed), Trenchev is cautious about expected rate rises, as well as the method in which they would be applied. While he believes that “cheap money” will continue to exist, he also believes that cryptocurrencies will benefit from it in the long run.

“You know I have been very skeptical as to the actions, while the Federal Reserve and the proposed rate hikes how that ultimately will unfold. My take is that cheap money is here to stay, and this is very good for assets such as crypto,” the Nexo founder revealed.

Cheap money is going to stay.

It’s important to note that Trenchev said that cheap money is here to stay, even though he was thinking about whether the Federal Reserve would keep tightening policy, which could mean that cheap money is over.

He said:

“Cheap money is here to stay, the consumer price index is expected to come in at 7.2%. The last time we had anything like this was back in the 1980s and the Fed’s response back then was to raise interest rates by 20%.”

There were a lot of people who didn’t know what to make of Fed minutes last month. The Nasdaq lost its biggest amount of money in 11 months. Back in December, the Federal Reserve said that tighter monetary policy was on its way. In early January, the Federal Reserve said that it was coming even faster and more widely than before.

The “potential” of the metaverse “is huge.”

When looking at the future of cryptocurrencies, other people talked about the metaverse and what it could do.

According to Trenchev, one of the reasons Meta (NASDAQ: FB) is getting into this new market is because they already have a lot of clients on their other platforms. Specifically, their stock fell 22% on February 3 when $200 billion went out of the company.

This is why he called the metaverse “incredibly exciting,” because it creates a “whole new economy on top of the old one.”

“The currencies of that and new economy are going to be the likes of Bitcoin and other cryptocurrencies. So the potential there is enormous,” he said.

Besides this, the Nexo founder said that non-fungible tokens (NFTs) will be important in the metaverse as they are in the real world. They will be deeds to homes, ownership, and status symbols.

Overall, the metaverse trend seems to be growing. In the last three months, the number of mobile apps with the word “metaverse” in their title rose fivefold, according to a report from Burga.com.

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