Investors are skeptical about the future of Bitcoin
Kyle Samani is not the enemy of cryptocurrencies. After all, as investment director of the Crypto hedge fund Multicoin Capital, he has been investing in this area for a long time. For the future of Bitcoin it is contrary to some counterparts, however, not positive. “I think Bitcoin is about to fall” he told financial news agency Bloomberg. Accordingly, he has only a very small position of the largest cryptocurrency in his fund.
Samani explains his prognosis with decreasing dominance among the cryptocurrencies: “Traders, payment processors and online casinos are turning away from Bitcoin.” Many websites that used to accept only Bitcoin would now accept payments in several other cryptocurrencies. In fact, its importance has decreased significantly in the past twelve months. At that time, total value of Bitcoin made up about 85 percent of the market in cryptocurrencies, currently there are, according to coinmarketcap.com only about 40 percent.
In addition, in recent weeks, regardless of the price development, daily Bitcoin transactions decreased. While it was close to 400,000 transactions per day (based on a week-long average) at around $ 20,000 in mid-December, this value has narrowed to just 200,000 in the past week – despite The price has recently rebounded noticeably from its low of around 6,000 to just under $ 11,000.
Charles Morris of investment firm Newscape Capital Group, which also invests in cryptocurrencies says: “We had a hype that is now cooling off,” he says, adding, “We could be about to start a bear market.” By that he means a longer phase of declining prices.
Faster at reduced costs
The positive development in the period until the confirmation of a Bitcoin transaction and their costs noticeable, the last both have significantly decreased again. However, it should also have been reflected that recently the largest US crypto exchange Coinbase has activated a software update, the so-called Segwit protocol.
Accordingly, not everyone sees black for the future of Bitcoin. “We have a legacy of too slow and too expensive transactions,” says New York crypto and Blockchain investor David Drake. “It will take a while for people to forget that, but they will come back.” His price target by the end of the year is therefore $ 35,000 per Bitcoin.
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Categories: Crypto Currency