Bitcoin (BTC) continues to decline, as well as the entire market. However, an investment strategist sees it as a technology that changes the paradigm that needs time to appreciate value.
Bitcoin 0 0 marks another day of trading in red with the rest of the entire market performing even worse. At the time of writing this document, all 100 best digital currencies are devaluing according to CoinMarketCap.
The signs of positivity can be found in the fact that the domain of Bitcoin is increasing despite the falling price – currently it stands at 53.6%.
According to the Chief Strategy Officer of CoinShares digital asset management company Meltem Demirors, Bitcoin is a fairly new technology and it takes time for people to understand.
Speaking with CNBC & # 39; s Fast Money, he said:
The new technologies that move the paradigm take a long time to really understand.
He also noted that there are no appropriate metrics to track the performance of technology beyond the price:
The bitcoin plot is still very difficult to understand. […] In reality the only metric we have for most cryptocurrencies is price, and the price is such an imperfect metric. What aspect does the actual use? This really is the fight to encrypt right now.
We are starting to see real traction. Much depends on finding those data points, those metrics that will lead to that growth story.
Ignore the price
According to the investment strategist, retail investors should ignore the price and consider cryptocurrencies as if they were Internet securities of companies like Intel, Microsoft or Amazon.
He also reiterated that the huge increase in the cryptocurrency market at the end of 2017 and at the beginning of 2018 was caused by hype.
What we saw in Crypto was this huge run-up, where everyone got "FOMO" or fear of losing, as we like to say. What has caused is a speculative bubble.
Jonathan Cheesman, partner of the digital resource management company Distributed Global, also shares the same belief that "the FOMO was a great driver and, unfortunately, most purchases are now under water".
In addition, the investment strategist believes that the cryptocurrency space is moving from a speculative bubble to "constructing real assets that serve a real purpose", as more infrastructure is being built to bridge the institutional capital.
Do you think the price of Bitcoin will increase or are we in a constant decline? Do not hesitate to let us know in the comments below!
Images courtesy of Shutterstock