A majority of the cryptos that make up the digital currency space will be worthless, but Bitcoin (BTC) will remain king of them all. This is what Digital Currency Group CEO. Barry Silbert who is also the founder of Digital Currency Group made these remarks during a telephone interview with CNBC believes.
Bitcoin (BTC) Price Today – BTC / USD
Bitcoin (BTC) Made Up 50% of the Overall Market Cap of Cryptos When it Hit $800 Billion Early in 2018
The rise of the initial coin offering market helped to bring the crypto industry’s market cap to $800 billion at the beginning of 2018 according to data provided by CoinMarketCap.com. At the time Bitcoin (BTC) made up about 50% of that $800 billion total market cap as its price climbed to nearly $20,000. Things are a bit different now as federal and state regulators have begun to checkmate the space. There have been many illegal offerings.
That elimination has already started with the Securities and Exchange Commission moving forward to crack down on ICO methods last year. The SEC Chairman Jay Clayton has repeatedly sounded warns to crypto founders to register their organizations with the federal regulator. Silbert who is in support of the SEC’s actions cited that most of the digital tokens in circulation were actually illegal offerings.
Bitcoin (BTC) is Down By 80% From its Peak Price Position At Press Time on Wednesday But Still Drawing Interest From Investors
Bitcoin’s (BTC) price came crashing down in 2018. The world’s first digital currency is down by 80% since its peak. It is trading at $3,572 as of press time this Wednesday.
Despite this unique position, Silbert remains bullish as ever on Bitcoin (BTC). As one of the early investors, Silbert has seen multiple price plunges, all of which made full recoveries.
Silbert said there’s a high degree of interest in Bitcoin (BTC) from institutional investors. His company Digital Currency Group has made some of the most active investments in the cryptocurrency industry, which is more than three times the sum of Andreessen Horowitz. Digital Currency Group owns and operates the BTC brokerage company Genesis Trading and Grayscale Investments.
Grayscale Investments launched the first publicly traded BTC investment vehicle known as the Grayscale Bitcoin Trust. It is an initiative which allows trades under GBTC on over the counter ecosystems.
Bitcoin’s Potential to Replace Gold as the Safe Haven Asset Class is an Added Advantage
Part of the advantage that Silbert sees in the leading digital asset is its potential to overthrow gold as the safe haven asset class. According to the Digital Currency Group CEO, more recent investors do not see gold as the safe haven as the earlier investors did. Silbert insists that the younger generation of investors will convert their gold to Bitcoin (BTC) as a hedge.
According to him the speculation use cases has been shown for Bitcoin (BTC) as a “acquire and hold strategy.” But when will meaningful institutional money start flowing in? Silbert remarked that heading into the year 2019, the foundation for institutional investors to flood in is safely in place. Fidelity’s custody solution is an example and other investment opportunities including the futures market offering by Intercontinental Exchange, are all scheduled for launch this year.