Bright Future is Ahead for Cryptocurrency Markets, A Billionaire Investor Says
Bitcoin’s price continues to trade around the $4,000 level over the last week after collapsing to around the $3,500 mark last month. The massive selloff has left investors wondering how long cryptocurrencies will remain under pressure.
The market has a mix opinion over the future of cryptocurrency markets; some are expecting the extension of the bearish trend, while others are forecasting a bull-run in 2019.
Jim Breyer, a billionaire investor – who has stakes in largest companies, including Dell, Blackstone, and Walmart, predicts that crypto markets might be entering into a “nuclear winter.”
Cyclical Price Movements Are Expected
The investor says he is interested in cryptocurrencies despite the slump in prices. He believes cyclical price movements have been seen in several other emerging markets in the past. He pointed out that the internet and artificial intelligence industry experienced huge price swings in the 90s.
Breyer said, “These cycles keep happening every decade or so, and this type of seasonality is ‘inevitable.’”
He applauded the invention of blockchain technologies, which are backing cryptocurrencies. Several top-rated banks and tech corporations have investigated blockchain technologies, and the majority of them are using these technologies to improve the efficiency of their businesses.
Blockchain technology has been contributing substantially to the financial sector. Banks and payment services companies all around the world are using blockchains to improve their cost and speed of both domestic and international payments.
He stated, “So many of the very best computer scientists and deep learning Ph.D. students and post-docs are working on blockchain because they have so much fundamental interest in what blockchain can mean… You don’t want to bet against the best and brightest in the world.”
Breyer believes that cryptocurrencies are likely to make price swings amid their unregulated nature and concerns related to its potential to work as a medium of exchange.
The cryptocurrency market has experienced several positive developments in the past few months – which would likely offer support to prices. The G20 group announced to take collective measures to regulate virtual currencies; these countries want to oversee the price manipulation activities and terror financing through digital coins. The announcement from G20 along with the entrance of Fidelity, Goldman Sachs, and the ICE are adding to investors’ confidence.
What’s your opinion about Jim Breyer’s stance regarding cryptocurrency markets? Express your opinion in the comment section below..