Vinny Lingham: Another Bitcoin Bubble to Be Expected Soon
The crypto sector has long been on a hiatus, and aficionados and crypto-analysts are curious about what comes next. Vinny Lingham, a South African entrepreneur who is also Chief Executive Officer of Civic, a BC firm working in security, stated that a BTC bubble happening again is unavoidable in the near future and it will be even more important for the market than the former one. He explained his views on the matter when attending the BECSA event called Chain Reaction early this week in SA's capital.
Lingham’s company Civic reached over $30 million via an Initial Coin Offering back in 2015. During his speech, he talked about what the future holds for blockchain technology, the development of the digital currency industry, and also the problems facing mainstream adoption.
He said another bubble is probably in the cards soon because people don’t seem to learn from previous occurrences. After reaching $20,000, it will quickly reach $100,000, causing a new bubble-busting round to take place. He says he is looking at the matter via a long-term approach, where the bubble would be caused by greedy investors.
End of Year Bubble
He explained further what happened during the bitcoin bubble last December and the ensuing supply/demand disruption, as interest from investors in digital funds and Initial Coin Offerings surpassed supply massively; however, during the 2nd quarter of 2018, it reversed back again. So, currently, there are many Initial Coin Offerings and very few buyers actually looking to purchase digital assets.
Lingham didn’t hold back when discussing mass adoption plans for BTC. He touched on the considerable issues with scaling further that will halt the development of the cryptocurrency and reduce the extent of its real-life applications.
Despite the fact that blockchain has been around for the past 10 years, Lingham says the technology is nevertheless in its inception phase still. For the most part, trading has been the leading use of cryptos outstripping financial transfer applications. He refers to the whole process as mostly speculation at this point. The primary concern is a question of whether or not the crypto industry will be able to maintain its original nature.
Furthermore, Lingham among many people concerned about a BTC bubble. Last July, Agustin Carstens, GM at BIS, emphasized the disastrous nature of a BTC bubble, referring to it as a Ponzi strategy.