One of the co-founders of Reddit, Alexis Ohanian, has some new views about the crypto space. It is a good outlook for long term investors and other enthusiasts hoping for growth in the industry. Ohanian spoke with Yahoo Finance and explained that the present bear market or crypto winter has a positive effect of erasing crypto speculators.
Bitcoin (BTC) Price Today – BTC / USD
Financial advisers believe cryptos were caught in a bubble
The crypto marketplace is still recovering from the January 2018 bull run where almost all coin prices experienced massive growth despite the lack of real-world integration or adoption. At that time, top currencies and other new coin projects were sustained on a massive investor speculation. This also comes with the frenzy of FOMO or fear of missing out. The result was bloated market prices beyond the sense of reason, and this led financial analysts and advisers to claim that cryptos were caught in the middle of a bubble.
Over a one-year period, coin prices have lost a lot of their value with many sitting 80% below their all-time high. Investment bases and cryptos were forced to endure the worst price downturns which may continue into the future.
Ohanian also believes that there has been a positive development for the crypto industry amidst the falling coin prices. This tech executive is a well-known crypto bull, and he admits that the market is presently in a risky position in terms of its valuation. Still, it has managed to attract all the right-minded developers as it purges empty speculation.
“So this is the crypto winter, no doubt. But a friend of mine, Brian Armstrong, who’s the CEO of Coinbase, said this is the spring of crypto innovation. And what he means is, yes, the prices are depressed. The speculators have fled. And that’s great because the people who are now building on crypto are true believers. And they’re actually builders. They’re actually building the infrastructure that it’s going to take to really make this happen.”
More people are interested in cryptos and blockchain
The co-founder of Reddit goes on to say that coin projects, cryptos and blockchain have stimulated the interest of the top minds in the world. This has been made possible with financial institutions and technology which are tilting towards the direction of cryptos. For Ohanian, the decision of talented developers to turn towards cryptos is a good sign for the digital currency space despite the drop in prices in the interim.
He also said,
“What’s a strong signal to me is still some of the smartest people I know in tech are working on solving these problems. They’re building companies that are built on blockchain. The hype is gone. The fervor is gone. But I think that’s a good thing.”
So far, Ohanian is comfortable with taking a long position on the crypto industry, and this doesn’t apply to just impact or overall growth. For investors and developers who have been in the space for a long time, Ohanian believes that there is a relation with being a seed investors nine years ago since the price movements of the previous year are just a distraction in the industry’s growth.
With Facebook and JPMorgan Chase being linked to developing coin projects, a shift in crypto adoption may get be experienced soon, and this would create a stable foundation for its valuation.