An executive at cryptocurrency payment service BitPay has stated that he believes Bitcoin is far from dead. Sonny Singh is much less optimistic about the future of the altcoin and ICO markets, however.
Lots of Potential Catalysts for Another Bull Run for Bitcoin
Every time the cryptocurrency market takes a nosedive, those who do not believe in the financial innovation led by Bitcoin take glee in announcing the death of the space. So far, they have all been wrong. A browse of BitcoinObituaries shows over 300 different instances in which the number one digital asset has seemingly risen from the grave.
There is nothing to suggest that the latest market correction is not more of the same. In fact, the fundamentals of the space have never been better. The chief commercial officer at BitPay, Sonny Singh, told Bloomberg earlier this week that Bitcoin might be down but is certainly not out. After acknowledging that he has no idea if the market has reached a bottom in terms of capitalization, he added:
“Right now you’re hearing a lot of rumours. But next year you’ll see the talk of the big entrants become real.”
Singh went on to cite Goldman Sachs’s pending trading desk, a Bitcoin product from Fidelity, merchant payment processing from Square, and possibly a BlackRock ETF. He is confident that Bitcoin prices will rise once again following some of these potential developments.
However, he is much less sure about the future of the altcoin and ICO market. Although Bitcoin has lost around 60% of its value in 2018, many other digital assets have suffered much more. Ether has crashed down over 85% from its highs. Meanwhile, XRP has sunk by around 92%. Singh commented:
“People have stopped trading ICOs as much as they were. The ICO market is in a lot of trouble and will never get back to where they were eight months ago. At BitPay, we’ve never been more bullish [on bitcoin]. Where the issue is, is the alt-coins.”
Although the bleeding in the altcoin market is clearly worse right now, it seems unlikely that the concept of the ICO is completely done and dusted. It is probable, however, that investors will be much more discerning in the future and not simply throw money at projects offering up the perfect blend of buzzwords.
We are already seeing a move away from the entirely lawless model of ICOs to more regulated offerings. Evidently, companies still like the idea of tokenised investments. However, they are becoming much more aware that these need to be compliant with existing securities legislation. It is quite possible that these security-backed tokens will become the flavour of 2019.