Can crypto have a bright future at the end of winter? While Bitcoin’s record rally may seem possible to some experts, the Bank of England is calling on the industry to have other aspirations.
Survivors Called to Reign
The crypto crisis continues to have a lasting impact on the industry and some players are calling for hope. Bitcoin and Ethereum are the obvious survivors of the winter, as Binance navigates carefree through the sea of difficulties that plague most businesses. Times will still be difficult, but after the crisis, the industry should grow again.
What if we expected more success than expected? According to the Bank of England, crypto winter survivors have a very bright future ahead of them. Vice Governor Jon Cunliffe thinks the industry’s crash is similar in every way to the bursting of the dotcom bubble. However, also as a result of the bursting of its own speculation bubble, the event did not destroy the World Wide Web. On the contrary, many companies have become very powerful.
To me, the crypto winter analogy is the dotcom boom, when $5 trillion was wiped out. […] Many companies have gone bankrupt, but the technology has not disappeared. It returned 10 years later, and those that survived – Amazon and eBay – proved to be the dominant players. […] Whatever happens to crypto assets in the coming months, I expect crypto technology and finance to continue as they offer the potential for massive efficiencies and changes in market structure.
Excerpt from Sir Jon Cunliffe’s speech at the Point Zero forum currently taking place in Zurich
Nevertheless, only a few of them could really know the glory
Could the big crypto players gain so much importance and even end up at the head of a monopoly? For the founder of investment firm Blocktower Capital, Ari Paul, this hypothesis is completely feasible.
However, this will not be the case for all companies in the industry. Only those who operate on the basis of surviving and powerful currencies, such as Bitcoin, will be able to claim such an opportunity.
According to him, Bitcoin’s potential is beyond proof and he remains convinced that the industry’s first cryptocurrency will dominate the industry as it has no competition outside the cryptosphere.
Bitcoin is only “favoured” because it is the only crypto asset that does not compete with any technology or product. It mainly competes on security/stability. So I’ve always thought that if it fails, it’s probably not because it’s being replaced with something better, but for idiosyncratic reasons, like failing.
BTC is the only asset that I currently consider to be a standalone portfolio allocation over a horizon of more than 3 years. […] Other cryptocurrencies may offer higher value but a lot of risk, so they are a fairly small part of a larger portfolio. In summary, I consider BTC like Amazon and everything else to be risky bets.
Excerpt from Ari Paul’s tweet arguing over the future of cryptocurrencies
In anticipation of such an event, the cryptosphere is still in dire straits. The crypto winter could also last longer than thought, heralding many bouts of cold sweats for investors. Meanwhile, Bitcoin is now hovering around $20,000. So the monopoly does not seem to exist for the time being.
All information on our website is published in good faith and for general information purposes only. Any action taken by the reader based on information on our website is entirely at their own risk.