Dan Nathan, founder of Risk Reversal Advisors, says the United States government will not continue to allow corporations like Elon Musk’s Tesla to replace dollars with bitcoins. They will not “let the dollar cease to be the world’s reserve currency”, which could happen if corporations continue to replace dollars on their balance sheets with bitcoin.
The US government will not allow bitcoin to replace dollars, says the head of risk reversal consultants
Dan Nathan offered his view on the future of bitcoin in an interview with CNBC last week. His comments followed the news that Elon Musk’s Tesla invested $ 1.5 billion in bitcoin and planned to allow cryptocurrency as a form of payment for its products in the near future.
Nathan is the director of Risk Reversal Advisors, which offers advisory services to investment banks, investment advisers and private companies. He spent the late 1990s and 2000s as a stock and options broker at hedge fund firms SAC, Exis, Cheyne Capital and Merrill Lynch’s equity derivatives group.
He started by stating that “the United States Treasury and the United States government” will not “let this thing get out of hand where literally corporations are beginning to replace dollars in large part” with bitcoin. When asked specifically what regulators can do to prevent companies from putting bitcoin on their balance sheets like Tesla did, Nathan exclaimed:
They can regulate hell out of it. This is what they can do.
He added: “We’ve already seen that. We have seen this to some extent. ”The founder of Risk Reversal Advisors stated:“ I’m just saying ”that they will not“ drop the dollar from being the reserve currency for the world ”, emphasizing that this is effectively what is happening with corporations increasingly replacing dollars with bitcoin.
Nathan continued: “At the moment, we are a little euphoric”, adding that both Tesla and bitcoin are “Two risky assets that have earned more than a trillion dollars combined in the last six months and are all based on hops. “
The counselor also said: “All these people, who are making a lot of money with these two things, simply understand that there must be some kind of seriousness that takes over at some point, and the two combined result, I think a very difficult situation if the two start to fall together, and the ripple effect that we will see in the foreign exchange markets, financial markets and others, can be great. No one is talking about it right now. There are no more opponents of bitcoin. “
After Tesla’s investment in BTC, analysts are predicting a flood of companies will do the same and put bitcoin on their balance sheets. Twitter Inc. has already said it is considering adding bitcoin as cash reserves and paying employees and suppliers in the cryptocurrency.
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