Bitcoin’s limited supply is a key feature of its technology, says Chamber of Digital Commerce CEO

Perianne Boring, Digital Chamber founder and CEO, joins CNBC’s ‘Squawk Box’ to discuss her expectations from bitcoin in 2024, what approval of spot bitcoin ETF means for the crypto industry, and more.

>>> CRYPTO HAS HAD A BIG YEAR. BITCOIN IS UP OVER 150%. MUCH OF THAT CONCENTRATED IN THIS PAST FALL’S PERFORMANCE, A BIG Q4. THE RALLY IS LARGELY ON INVESTOR HOPES OF S.E.C. APPROVALS FOR SPOT BITCOIN ETFs. JOINING WITH US MORE ON CRYPTO AND WHETHER THE GOOD NEWS IS

ALREADY PRICED IN, PERRY ANN BORING, FOUNDER AND CEO OF CHAMBER OF DIGITAL COMMERCE. THANK YOU FOR BEING HERE. LET’S START THERE, DO YOU THINK THAT THE GOOD NEWS IS ALREADY PRICED IN? THERE ARE CONCERNS OUT THERE THAT IF AND WHEN THE SPOT BITCOIN ETF IS OFFICIALLY

APPROVED, IT WOULD BE A FELL ON THE NEWS EVENT. YOU T DO YOU AGREE WITH THAT? >> I DON’T. THERE IS A LOT OF PENT-UP DEMAND FOR ACCESS TO BITCOIN. YOU HAVE TO UNDERSTAND THAT THE GOVERNMENT HAS BEEN PUTTING ITS THUMB ON THE SCALE OF INNOVATION

AND PREVENTING PUBLICLY LISTED BITCOIN PRODUCTS FROM COMING TO MARKET. NOW THAT A SPOT BITCOIN ETF WILL BE HERE SOON, IT IS NOT AND IF EVENT, IT IS A WHEN EVENT, THERE IS A LOT OF PEOPLE WHO WANT EXPOSURE WHO WILL NOW HAVE ACCESS TO IT.

WHEN YOU ADD A SMALL AMOUNT OF BITCOIN TO A PORTFOLIO, IT INCREASES THE SHARP RATIO. AND THAT IS WHY THERE IS SO MUCH INTEREST IN THIS ASSET CLASS. I REALLY LIKE WHAT MICHAEL SAILOR AND NATALIE BRUNELL SAID ABOUT BITCOIN EARLIER THIS WEEK, BITCOIN EMPOWERMENT TECHNOLOGY,

BITCOIN IS GOING TO EMPOWER FINANCIAL ADVISERS TO ALLOCATE AGAIN BECAUSE IT INCREASES THE SHARP RATIO. AND I THINK A CASE COULD EVEN BE MADE THAT IF YOU’RE A FIDUCIARY, YOU HAVE A RESPONSIBILITY OF ADDING BITCOIN TO A PORTFOLIO BECAUSE OF HOW IT PERFORMS.

>> WHY IS IT INVARIABLY INCREASE THE SHARP RATIO, WHICH IS A WAY THAT INSTITUTIONAL INVESTORS CALCULATE RISK ADJUSTED RETURNS, INCLUDING SOME SORT OF HEDGING MECHANISM, MAYBE THROUGH A SPOT ETF OR OTHERWISE TO ENSURE THAT THOSE RETURNS ARE, IN FACT, ADJUSTED ACCORDING TO THEIR RISK PROFILE.

>> WELL, YOU ADD A SMALL AMOUNT OF BITCOIN TO AN INVESTMENT PORTFOLIO, THE RISK GOES DOWN AS WELL AS THE VOLATILITY GOES DOWN. AND THAT’S WHY THE SHARP RATIO GOES UP. BUT WHAT IS REALLY IMPORTANT ABOUT A SPOT BITCOIN ETF IS THAT IT ALLOWS FINANCIAL ADVISERS TO

BE ABLE TO ALLOCATE THEIR CLIENT’S PORTFOLIOS TO THIS ASSET CLASS. PRIOR TO HAVING A SPOT BITCOIN ETF, WHICH IS PENDING, IT IS IMMINENT, FINANCIAL ADVISERS COULDN’T REALLY HELP THEIR CLIENTS NAVIGATE THIS NEW ASSET CLASS. AND INVESTORS WOULD HAVE TO LEAVE THE FINANCIAL ADVISORY AND

GO NAVIGATE THIS ECOSYSTEM ON THEIR OWN. THIS EMPOWERS THE FINANCIAL ADVISERS TO SERVICE THEIR CLIENTS DIRECTLY ON THIS NEW ASSET CLASS OF BITCOIN. >> OKAY. I THINK WE DON’T KNOW WHAT THE FUTURE OF BITCOIN TRADING LOOKS LIKE IN TERMS IT GOING UP OR DOWN.

BUT IN TERMS OF THE DESIRE OF INSTITUTIONS TO BUY BITCOIN, WHAT ARE YOU HEARING IN TERMS OF JUST THAT MARGINAL DEMAND THAT IS OUT THERE? DO YOU HAVE ANY NUMBERS OR FIGURES IN TERMS OF JUST THE PEOPLE WHO HAVEN’T BEEN ABLE TO

GET EXPOSURE TO THIS ASSET CLASS THAT MAY SOON WANT TO? >> YEAH, WE USE VALUATION MODELS TO TRY TO UNDERSTAND WHAT IS THE VALUE OF BITCOIN TODAY. WE ALL KNOW WHAT THE PRICE IS. IT IS WHAT IT IS TRADING FOR ON EXCHANGES, WHICH OPERATE 24/7. BUT THE REAL QUESTION THAT WE

NEED TO UNDERSTAND, INVESTORS NEED TO UNDERSTAND IS WHAT IS THE VALUE? WE USE FOUR DIFFERENT VALUATION MODELS. TODAY IT HAS THE PRICE OF BITCOIN CURRENTLY VALUED BETWEEN 100,000 AND $210,000 PER BITCOIN. WE ALSO APPLY AN S CURVE ANALYSIS TO LOOK AT THE

LONG-TERM ADOPTION OF BITCOIN, CURRENTLY ABOUT 40% OF U.S. HOUSEHOLDS HAVE ALREADY ALLOCATED AND OWN SOME FORM OF CRYPTOCURRENCY TODAY. WE ARE ON TRACK FOR 90% ADOPTION BY 2029. ONCE WE HIT THAT 90% ADOPTION, PRICES COULD GO AS HIGH AS $1 MILLION A COIN BECAUSE, AGAIN,

BITCOIN HAS THAT LIMITED SUPPLY, WHICH IS A KEY FEATURE OF THIS TECHNOLOGY. >> SO THERE IS A LOT OF IFs THERE. I GOT TO ASK, IF THAT IS THE CASE, WHAT HAPPENS WHEN GOVERNMENTS INTRODUCE THEIR OWN DIGITAL CURRENCY? >> WELL, I MEAN, WE HAVE ALREADY

SEEN CENTRAL BANK DIGITAL CURRENCIES BE INTRODUCED AROUND THE WORLD, MOST NOTABLY CHINA HAS BEEN THE GLOBAL LEADER IN BRINGING THE DIGITAL NEW LINE TO MARKET. WE BELIEVE THAT THIS IS SURVEILLANCE TECHNOLOGY THAT WILL BE USED TO CONTROL AN ENTIRE POPULATION. THEY CAN BE INCREDIBLY DANGEROUS.

I DO NOT BELIEVE THAT BITCOIN IS NECESSARILY A DIRECT COMPETITOR TO CBDCs. I THINK THAT BITCOIN CAN CO-EXIST WITH THE MONEY WHETHER IN THE FORM OF A CENTRAL BANK DIGITAL CURRENCY OR THE TYPE OF TECHNOLOGY CENTRAL BANKS ARE USING TODAY. THE LEGACY TECHNOLOGY.

BITCOIN IS LARGELY BEING USED AS A STORE VALUE. THAT’S A DIFFERENT USE CASE AND A DIFFERENT APPLICATION THAN CURRENCY. SO I DON’T THINK WE NEED TO PEN BITCOIN UP AGAINST AS AN ADVERSARY TO THE U.S. DOLLAR FOR YEARS, FOR 14 YEARS, THEY CO-EXISTED. AND ALSO