Spencer Bogart, a partner with blockchain-focused venture capitalist Blockchain Capital has said there are huge opportunities with bitcoin [BTC] despite the current slump in cryptocurrency markets.
Bogart, during an interview with Bloomberg, said that the cryptocurrency—bitcoin in particular—held great promise despite the current slump in price. He added that virtual currency assets will soon correlate with traditional tech stocks.
This comes at a time when bitcoin is facing one of the most tumultuous periods with regards to its price. As Smartereum reported, bitcoin (BTC) briefly touched a new yearly low of $4,200 on Wednesday after bouncing back from a previous low below the $5,000 mark the previous day. The latest dip seemed to have dampened the hopes of several crypto followers; Bloomberg analysts suggesting the price will drop steadily to $1,500.
However, Bogart was adamant bitcoin, which he referred to as ‘programmable money’ constituted a multi-trillion dollar idea. According to him, bitcoin will inevitably experience an explosion in its use globally.
He explains:
“Right now, some people use it [Bitcoin] because they have to and I think over time, more people will use it because they have. Because it can do things that they can’t do otherwise.”
Bitcoin is Special Enough
While there are over 2000 digital assets available, Bogart singled out the pioneer crypto, bitcoin for great things. This, he explained it’s due to the continued dominance of bitcoin over the rest of the crypto market. Bitcoin dominance currently stands at 53 percent of the entire crypto market despite losing around 30 percent of its market cap since last week.
He advices stakeholders to place their bets with bitcoin rather than searching for the “next bitcoin”. And his logic is simple, “[Money is a] network effect type ecosystem,” and bitcoin with its significantly larger market share will always have a more established network effect and will, therefore, stay on top at all times.
Bitcoin and Institutional Money
Bogart joined a number of people counting on institutional involvement to transform the cryptocurrency space. He said that he expects the crypto space to change considerably once institutional investors get their money into the crypto space. While admitting that virtual currency assets differ greatly for traditional assets like tech stocks, he noted that institutionalization will make them more correlated in the future.
Bloomberg analyst Joe Wiesenthal who weighed in on the subject of bitcoin’s plunge said that bitcoin—and cryptocurrencies in general—have not proven to be the alternative investment haven people have hoped for in case of a selloff in the traditional markets. He explained that the signals from the crypto market did not show any discrimination between assets as all digital assets tens to rise and fall with bitcoin.
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Bitcoin [BTC] Price watch
Bitcoin price is still down, reeling from the shocking plunge witnessed in the past few days. Trading at $4,512 to the US dollar, BTC has lost 18 percent from the last 7 days; most other top 100 coins have seen double-digit losses in the same time period.
Analysts are looking for a new bitcoin bottom after BTC dropped to $4,200 two days ago. As Smartereum reported, Bogart had predicted last month that the bitcoin bottom was close. “We’re down about 70 percent from our highs, so I think that Bitcoin is close to bottoming and so is the rest of the market,” he told CNBC at the time.
Solomon Sunny is the market reporter for Smartereum, one of the global leaders in Ethereum, blockchain and currency news. He produces technical price updates on digital currencies and writes recent developments about blockchain.
