Recently, Erik Voorhees, the Founder of ShapeShift spoke about Bitcoin, his involvement in the space prior to founding ShapeShift and the government’s perspective on the biggest cryptocurrency, during a discussion with Naomi Brockwell on Youtube.
The Founder revealed that he got to know about Bitcoin in May 2011, through a post on Facebook. He added that Bitcoin changed his life post reading few articles on it, he said, “he fell in love with it [Bitcoin]”. Voorhees realized that people can move value instantly anywhere in the world with Bitcoin at near zero cost and that it cannot be stopped by anyone. The cryptocurrency would inevitably start taking over the world as it is economically useful to have this system, he added.
The CEO further spoke about the projects he has been a part of in the cryptocurrency space. He said:
“I’ve been involved in number of crypto-projects, Bitinstant, you know, back in the day back in early 2012, Satoshi Dice, which was the world’s largest Bitcoin casino […] but for the last four and a half years, it’s been ShapeShift.”
Voorhees also spoke about the evolution of the cryptocurrency space over the past 10 years. The early Bitcoin adopter believes that cryptocurrency has the “significant potential” to take over the world and that it is going to replace the government’s fiat. This will happen as people realize that there is an alternative for the scam. Voorhees feels that this is inevitable and that it can only happen if a group of people can make this happen. This is also the reason he dedicated his life and projects in the cryptocurrency space.
He further added:
“It [Bitcoin] certainly came a hell of a long way. I mean every financial institution in the world is watching it, every government is somehow bothered and a little nervous about it. Tens of millions of people have used it, most people in the developed world have heard of it at this point. So yeah, it’s made a huge progress.”
Voorhees continued to say that there is still a long way to go, even though the crypto-space has seen a massive growth. Nonetheless, he believes that Bitcoin has a higher chance of taking over the world now in comparison to the timeframe of when he got stepped in the cryptoverse.
Furthermore, the CEO spoke about the governments and its current moves on cryptocurrencies. He started by saying that a government which is as big as the United States is not one entity but is a hydra of many different massive agencies.
“I was fearful in the earlier days that the US governments and like the other governments would be more harsh on Bitcoin, that they would see it as an existential threat to their own currency and this they would fight it tooth and nail”
However, the government turned out to be more tolerant, contrary to his fears. Voorhees thinks that this is mainly because the governments still do not realize that Bitcoin is an existential threat to fiat. They consider the cryptocurrency as a problem for tax evasion, money laundering or drugs and are currently trying to figure out ways to deal with the problem. However, he said, they do know that they cannot stop Bitcoin.
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Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021
The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.
According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.
Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,
“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”
Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,
“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”
Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,
“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”
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