90% of Bitcoin Usage is Speculation — 10% Transactions, Says Luno CEO

Marcus Swanepoel, CEO of cryptocurrency exchange Luno, says that most of its users use Bitcoin (BTC) as an instrument for investing and speculating. Transacting, however, comprises a small share of the cryptocurrency’s use cases, he explains.

Bitcoin usage: 90% digital gold, 10% digital cash

Swanepoel said during an interview with CNBC published on Aug. 26, that only a small portion of its users buy Bitcoin only then to use it for transactions. Meanwhile, nearly all are either investors or speculators. He explained:

“Roughly about 90% I would put into the category of investments slash speculations, so it could be people who have a long term view on it, people who like to trade it and about 10% would be transactions.”

Portfolio managers should have some exposure

Swanepoel also suggests that — when managing investment portfolios — “it does make sense to put a tiny little bit of money into cryptocurrency.” The reason he provided is that, while risk is high, the potential returns are astronomical.

As Cointelegraph reported yesterday, head of over-the-counter sales at cryptocurrency exchange Kraken Nelson Minier has compared today’s cryptocurrency trading industry to his early days of Wall Street — adding that it is still too soon to call Bitcoin a safe haven for investors. Read More at CoinTelegraph...