Ever since Bitcoin reached its all time high, everyone has been expecting a bubble burst. This is because the cryptocurrency industry has been likened to the Dotcom boom many years ago. Many have predicted that the cryptocurrency industry is going to have a major boom that will take it to the ranks of Dotcom. Unfortunately, things haven’t been rossy for the industry this year. People are starting to abandon the hope that Bitcoin or the cryptocurrency market as a whole will ever get to that level.
Bitcoin (BTC) Price Today – BTC / USD
Even with the current situation in the market, some experts still have faith in the cryptocurrency industry. A few known figures in the industry have predicted that Bitcoin and other cryptocurrencies are simply preparing for something great. The CEO of Ambrosus, Angel Versetti, during a sit down with independent U.K, said that it doesn’t make any sense to compare the cryptocurrency industry to the Dotcom Bubble. He insisted that while there are some similarities between both, they aren’t the same. Some of the similarities he mentioned are the overvaluation of technology related startups, platforms, oversaturation of products and services that are attached to both cryptocurrencies and Dotcom.
Regarding the cryptocurrency industry he said he believes that the industry is not anywhere near a bubble yet. According to him, the entrance of institutional investors like bankers and financiers shows that a bubble, the first real one in the industry, is on the way.
At What Point Will It Be Considered A Bubble?
To drive his point home, Versetti said that the industry will be in a bubble when the total market capitalization of cryptocurrencies go as high as $15 to $20 trillion. He believes this is when the market will reach its peak. With the current market capitalization hovering around $150 million, it’s difficult to visualize it from this level.
Another cryptocurrency expert, Tel Aviv, made a similar prediction. He said that even if people will always compare the cryptocurrency industry to the Dotcom era, this comparison isn’t useful or helpful. To back his claim, he talked about the performance of the FTSE 100 in 2008. He believes that this isn’t the time for traders to give up on the market as the best is still yet to come.
Newton believes that there is a silver lining in the industry. According to him, the bear market is not just affecting the cryptocurrency industry but the traditional financial market as well. He says the bad actors will be flushed out of the market after now and only long-term investors will remain. In his words:
“A bear market is beneficial in a way because it weeds out traders who are not devoted. Those who are not interested in the underlying technology but are only interested in profit will run away during a bear market. When the bearish rally ends, only those who believe in the technology will be left.”
Not too long ago, the Bitcoin maximalist, Tone Vays said that the price of Bitcoin hasn’t reached bottom yet. According to him, the bears push the price of Bitcoin down by 80 to 90% on a yearly basis. This year, it has only come down by 75%. This means that there is room for a fall as low as $3000. Investors are encouraged to consider the long-term prospects and not just the short-term price action of the cryptocurrency.