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Monero [XMR]’s Riccardo Spagni: Bitcoin [BTC] is still trying to figure out its price

Priya

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Monero [XMR]'s Riccardo Spagni: Bitcoin [BTC] is still trying to figure out its price
Source: Unsplash

Riccardo Spagni aka fluffypony, a lead developer of Monero spoke about the ongoing bear market, which has been ravaging the entire space, during an interview with Tech Central. He also spoke about whether this bear market is similar to the previous ones.

Riccardo started by stating that this is his fifth bear market in the cryptocurrency space, remarking that he is accustomed to the bear’s refuge and added that it’s not surprising anymore. He further stated:

“I think if you if you’ve been in the space for a short amount of time and this is your first bear markets which is entirely possible given that the last bull run before this one was 2013. So anyone who came in after 2013 would have entered during the bear markets and then would have seen a bull run till $20,000. If this is your first crash, then you are going to go like, oh oh no, the sky is falling!”

Investors, who have witnessed the bear market for the fifth time, start to see a trend, he added. However, this trend, according to him, is not unique to Bitcoin or cryptocurrencies and it often occurs in the stocks market wherein a stock reaches it’s all-time high and is followed by crash because of a scandal or market sentiments. Nonetheless, when this takes place, the price settles above the previous all-time high and when the bull race takes place again, it breaches its previous highs, Spagni stated.

Furthermore, the developer was asked whether history is repeating itself. To which, he agreed, stating that Bitcoin is still trying to figure out its price or the market is trying to figure out the price for Bitcoin. He said:



“[…] I mean, we’re several decades away from that [block reward] dropping down to a value that is so insignificant that fees are greater then the block reward”

Taking this into consideration, Bitcoin continues to be the currency with relatively high inflation rate, which is the reason the price discovery is hard, he stated. Spagni further added:

“So, you’ve got a high rate of inflation, you’ve got this massive volatility because there’s irrational exuberance and everyone thinks they’re getting rich and so because of that, you’re going to have highs and lows and the swings are going to be extreme.”

However, he stated that Bitcoin’s price discovery will happen on a macro time scale i.e., in the next 10 to 20 years time span. This was followed by him stating that the price is certainly not going to be $3500 or $4000, adding that it is going to settle “much higher” as the inflation would drop down, making the utility of the biggest cryptocurrency more apparent.





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

Bitcoin

Bitcoin [BTC]: Debating on king coin’s transaction speed is a red herring argument, says Charlie Shrem

Akash Anand

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Bitcoin [BTC]: 'Debating about BTC's transaction speed is a red herring arugument', claims Charlie Shrem
Source: Pixabay

The debate around Bitcoin [BTC] and its effectiveness in the current financial atmosphere has been a long ensuing debate in the cryptocurrency industry. The supporters and naysayers of the world’s largest cryptocurrency have locked horns on various aspects of the coin, be it the coin’s characteristic as a store of value or the amount of time it takes to settle Bitcoin transactions.

In a recent tweet, Charlie Shrem, the Founder of Bitcoin.org and one of the most popular Bitcoin proponents, spoke about the topic, directly addressing critics who had a problem with settlement times. His tweet read:

““Transaction speeds” when debating #bitcoin vs other faux-crypto’s is red herring argument. There were plenty of fast ways to move money before bitcoin. That’s not why we’re here. We’re building a censorship resistant value network that can-never be controlled by a single party.”

Bitcoin proponents had always made it a point that the cryptocurrency was never meant for fast transactions, but rather to compete with Gold as the standard for a ‘store of value’. Even Samson Mow, the CSO at Blockstream had earlier claimed that BTC was never meant to be fast by adding:



“If you want money, it does not need to be very fancy, and a lot of the altcoin projects; I don’t wanna go into it but they are just based on gimmicks. What you really want is sound money, something which is reliable and bulletproof.”

The ‘BTC is not effective’ camp had responded voraciously many a time by stating that something aimed at changing the financial dynamic should be nothing short of fast or else there was no way it could become an effective form of value. This rebuttal for this argument was that Bitcoin’s goal was to create a cryptocurrency integrated mainstream structure and even though it was not lightning fast, the transaction speed of Bitcoin was still faster than that of current methods like Visa and MasterCard.

Charlie Shrem was also in the news recently when he stated that when Mt Gox imploded, the market created the first “token as debt”. The statement was made in connection with the massive loss of funds which occurred following the hack of the then largest cryptocurrency exchange.





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