Crypto-market Drops Again Although Not All are Concerned
The 13th of August proved to be one of the worst day’s in cryptocurrency market history as Bitcoin (BTC) reported a drop of six percent and alternative coins plummeted way lower. Despite this, not every investor is showing signs of concerns as many believe this is just part of the regular crypto-cycle.
The CSO at Coinshares, Meltem Demirors, has recently spoken about the current situation of the cryptocurrency market. During an interview on CNBC, she was asked about the involved factors denying Bitcoin from acquiring its status as a store of value on a global scale.
The CSO then replied by saying Bitcoin’s narrative is proving difficult to fully understand. She goes on to say that when considering what institutional and retail investors are in search for, what exactly is the narrative and how does actually using Bitcoin look like given that value, or price, is a highly flawed metric.
Her comments heavily suggest that the community and industry are riddled with misunderstandings towards the situation and that the industry has essentially no idea of which direction its currently heading towards which she deems as heavily problematic.
Another question by the interviewer was asked, regarding a possible situation where BTC was considered a stock, what would motivate buyers to make purchases? As a response, the CSO then compared cryptocurrencies and their market to the revolutionary impact of the Internet during the 90’s and beginning of the 2000s by saying that new tech and innovations that provide a heavy impact on the global industry and would take time to fully comprehend and accept.
Additionally, as prices are more so displayed as the most important factor to the industry, Demirors overlooks these prices and has made two important points regarding data which display a possibility for long-term cryptocurrency expansion and advancement. As she states, two specific startup measurements commonly displayed are the accessible market in total and the penetrative impact of the said market. She adds that if BTC was to be considered a store of value, the addressable market as a whole is, in theory, massive.
Going on with her explanation, if BTC does, in fact, become every day and easily utilized, the digital currency market and most notably, Bitcoin, would draw in profits in the double-digit trillions as a result of a massive user-run to find the most efficient store of value. Ethereum could easily become an internationally adopted technology by billions of individuals should its scaling methods continue being available.
Even though all of this comes off as positive news, Demirors mentions that the tech itself is still infantile and that global adoption and acceptance may come years down the line. The market has struggled severely in the recent months.