The opening months of 2018 have marked a bloody phase for cryptocurrencies, where numerous projects have shed value or have altogether died.
Through the onslaught of winter, however, key figures in the cryptocurrency landscape have retained their optimism – advocating that markets will re-establish themselves by the close of the year and that blockchain technology, coupled with meaningful adoption and regulatory support, is here to stay.
As Bitcoin continues to challenge support for a breakout past the $7500 USD mark, these claims will be put to the test – and here, we’ll examine five cryptocurrency advocates who have held fast to their faith while the dream might otherwise have been lost.
The CEO of the Digital Currency Group, Barry Silbert has retained his optimism through the cryptocurrency sphere’s most recent bear market – and recently went on to quip that Bitcoin may have reached its rock-bottom value for the year.
Speaking at the Delivering Alpha Conference in New York this Wednesday, Silbert elaborated on his view – saying “we’ve probably hit the bottom for the year. I actually put some money into Bitcoin last week.”
Silbert went on to express his optimism and addressed the wider cryptocurrency market, saying “as an asset class it is here to stay … I’m 100 percent confident a decentralized, non-fiat form of money is here to stay.”
Brian Armstrong, the CEO of Coinbase, is another figure who has previously offered his insight to the cryptocurrency community in a series of encouraging tweets regarding the current volatility of the cryptomarkets.
During an address to company employees, Armstrong said that the temperamental state of cryptocurrency market sentiment is not as negative as people generally make it out to be, and the somewhat emotional market is not a fair reflection of the blockchain industry. He suggested that one should rather consider transactions seen per day or similar aspects of virtual currencies in order to gain insight into the nature of cryptocurrency adoption.
“When there is hype, people are irrationally exuberant. When there is despair, people are irrationally pessimistic. Neither is true. Reality is always somewhere in the middle, more correlated with real usage (transactions per day) than the price.”
Armstrong went on to say that bear markets have healthy value, in that less-committed investors are weeded out:
“After many years of this, I’ve come to enjoy the down cycles in crypto prices more. It gets rid of the people who are in it for the wrong reasons, and it gives us an opportunity to keep making progress while everyone else gets distracted. We use the down cycles to build a strong foundation so we can thrive in the next growth cycle.”
Fundstrat’s Tom Lee has previously issued bullish stances on Bitcoin – and while the advisor has lowered his price prediction – positing that Bitcoin will only touch $22,000 USD in place of $25,000 USD – Lee remains optimistic.
Speaking on CNBC’s Fast Money, Lee outlined his belief that “Bitcoin has historically traded at 2.5 times its mining costs. It’s not out of the question that it could be over $20,000 by the end of the year at fair value… What I was trying to illustrate was that given where mining costs will be and applying the historical average of 2.5 times mining costs, that would imply fair value over $20,000, roughly $22,000.”
Lee retained his optimism, however, noting his view that “We still think bitcoin can reach $25,000 by the end of the year… or something like that.”
Lee has previously indicated his belief that Bitcoin would top $25,000 USD values by the end of 2022, but proceeded to moved that claim forward by four years in January.
In an interview with Squawk Box co-host Akiko Fujita, TenX co-founder Julian Hosp reiterated his view that Bitcoin could reach values as high as $60,000 USD before the close of the year.
Revisiting his prior price forecast, Hosp elaborated that “Back then, December, price was at a $20,000 all-time high. I predicted for 2018, we’re going to see $5,000 and $60,000. So $5,000, we’ve pretty much hit it, so let’s see if we can do the $60,000. I’m still quite confident.”
Hosp elucidated that he believes Bitcoin could reach $60,000 USD by year-end in the wake of a ‘massive positive event’ – noting that many announcements – such as positive regulatory news – could propel the pre-eminent cryptocurrency past its all-time high.
Hosp has previously iterated that while Bitcoin may continue to reach a new all-time high by the end of the year, the pre-eminent cryptocurrency will continue to meet volatility that will drive its price both upwards and downwards.
Billionaire venture capitalist Tim Draper is no stranger to stepping forward with a bullish claim – and the businessman has noted his belief that Bitcoin will reach $250,000 USD by 2022.
During an interview with The Street on June 12th, the entrepreneur doubled down by saying that that Bitcoin would not only reach the end of 2018 trading at $25,000 USD, but that the pre-eminent cryptocurrency would be worth a quarter of a million dollars just three years later.
Draper’s comments touched on impending regulation – citing his belief that “Cryptocurrencies are the next big technological tectonic shift and governments have to weigh their need to protect investors with their need to be included in this potential economic powerhouse that is crypto. I believe cryptocurrencies will overtake fiat currencies in the next five to seven years.”
Draper’s optimism was not just limited to Bitcoin. Speaking broadly on the global currency market, Draper predicted that the market space would grow to over $140 trillion USD in the next ten years, attributing most of that growth due to the impact of cryptocurrencies.
“I estimate that fiat currencies will actually decrease in use, and that crypto will become as much as $100 trillion of that market. I expect Bitcoin to be about 10% of that market, or $10 trillion. There is a lot of room to grow there”, Draper said.