Recently, Vitalik Buterin, the Co-Founder of Ethereum, spoke about crypto growth at the Ethereum Industry Summit conference in Hong Kong, in an interview with Bloomberg.
During the interview, Vitalik said that the blockchain industry has reached a point where it can be seen hitting the ceiling. In his opinion, in the current scenario, an average educated man will probably have heard of blockchain at least once. He further added:
“There isn’t an opportunity for yet another 1,000-times growth in anything in the space anymore.”
Vitalik also said that the initial growth in Bitcoin [BTC] and other cryptocurrencies in the first five or six years into the blockchain industry were inclined to depend on marketing strategies and it required a wider set of people to adopt. However, the strategy will be hitting a dead end, he hints.
Buterin said that the future of the industry next involves bringing people who are currently interested in cryptocurrencies to be involved in a deeper sense.
In a text message to Bloomberg, Jehan Chu partner at blockchain investment and advisory company, Kenetic Capital, wrote that there may be chances for further growth of the industry in 2019. He added:
“There are deep reservoirs of value just waiting for the right trigger.”
The crypto market has seen a rapid decline in value this year, and Ethereum has been dragged down with the weight of the bearish market. It was reported to fall below the $200 line, marking its new low since June this year. The Ethereum platform serves itself as the hub for ICO funding and the fall has raised concerns among many. In a recent interview with Ran Neu-Ner, four CEOs of companies in crypto Israel sat to discuss the effects and gave their opinion on the same.
On the other hand, the governments have still shown a negative stance towards the crypto industry. Recently the U.S Securities Exchange Commission [SEC] denied 9 Bitcoin ETF proposals stating that it was concerned about unregulated market volumes in the industry. However, the Commission decided to review its decision which is still pending with them.
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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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