In spite of price falls over the year, there are better times ahead for cryptocurrency…
Vultures have been circling cryptocurrency for the past few months, as the prices of pretty much every coin have tumbled from their incredible highs at the end of 2017. Bitcoin, the market leader, is trading some 70% lower than it was last December, Ethereum hit a new low for 2018 this week, and other currencies are finding it difficult too. It’s not hard to find someone spouting doom and gloom.
And yet the crypto market is still a vibrant one, that holds an awful lot of value. Long time cryptocurrency advocates continue to maintain that HODLing is the best strategy, and predictions of market rises are plentiful.
Allianz chief economic adviser Mohamed El-Erian is certainly having none of the overly-dramatic talk. “Crypto is not dead”, he insisted, “and certainly the underlying technology is not dead”.
In fact, he paints a rosier future than many around him. “We’re going to see more widespread adoption, by both the private and public sector, of the blockchain technology and related technologies”, he argued.
He added too that “In terms of crypto, what we’re getting is the realization that adoption is not going to be as big and as quick as the proponents of crypto would like”.
El-Erian was attending the Reuters Global Markets Forum, in the aftermath of reports that the cryptocurrency price decline this year is now more dramatic than the infamous dot com crash back in 2000. It’s hard to see the two as direct parallels, but conversely, it makes for a good headline…