CEO of Circle Is Confident On Cryptocurrency Valuation
Today we’re going to give you a bit of a daily recap in regards to everything that’s been going on the world of crypto!
- Firstly we’ve seen some greens in the market, but it’s still very volatile with Bitcoin sitting at the $3270 mark.
- There’s been a bit of controversy over Coinbase’s new direction and approach to the support of new digital assets
- Cryptocurrency regulations tighten further in Hong Kong
- Cryptojacking overtakes ransomware as the top malware
- Crypto Anarchist Manifesto Author Tim May dies from Natural Causes
- And Finally, DeCred Co-founder believes that 2018 may be the year of the death of the ICO Model?
Now, while a lot of the recent news concerning the market sounds quite grim, here’s something that’ll hopefully give everyone a bit more hope.
Just recently on December 14, 2018, Jeremy Allaire the CEO and co-founder of Circle, mentioned in a CNBC interview that he is confident that cryptocurrency valuations will increase over time despite the bearish market. While there are many people who are currently defending the market, Jeremy Allaire presented a powerful and solid argument as to why Bitcoin will be worth a lot more in the future than it is today.
The biggest value Bitcoin has to offer is that it can hold stored value. However, more coins similar to Bitcoin can emerge, but it can only have value if the market consents to its value. Jeremy Allaire believes that Bitcoin will remain a store of value as it currently holds the most trust by the market. For example, it’s like the Mona Lisa – you can have another painting, but the Mona Lisa will also ways hold value because people believe in it.
Furthermore, I think the biggest thing that is attractive about cryptocurrencies in general in comparison to existing financial solutions is that it is borderless, it does not sleep, and it’s not prejudiced. By being the only solution to the world that can cater to anyone with internet, it gives cryptocurrencies a natural advantage over all over existing financial solutions.
Despite these features, factors are holding the market behind, which are affecting the prices of these tokens.
Firstly, there are many people in the cryptocurrency industry who want to profit via trading. They are not interested in investing in the long-term value of different cryptocurrencies. Unfortunately, this leads to people trading by looking at chart predictions rather than the technological, social and economic value that cryptocurrencies are providing. To use an analogy, trading cryptocurrencies without a comprehensive understanding is similar to people buying and selling land without understanding the agricultural, industrial or economic potential of the land being sold or traded. This is mainly due to a lack of a solid understanding of the cryptocurrency and blockchain industry.
Secondly, when it comes to regulations, Cryptocurrencies are difficult to regulate because their use, function, and value, range from being a digital security token to commodity tokens, to a value of storage, and even on-platform solutions, and much more. Thus it is difficult to regulate cryptocurrencies under the one roof. So the best step to regulate cryptocurrencies is to first better categorise and define them. Once there are more evident categories and definitions, regulators may be able to enforce more specific and accurate regulations that are appropriate for the use of the said cryptocurrency or asset.
What do you guys think?
Do you think traders looking to reap a profit is causing the strong fluctuations in the market?
And do you cryptocurrencies should be broken down further in more specific categories before they are regulated?
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Disclaimer: Cryptopig content is written by a team of blockchain passionate people. We are not registered as investment advisors. Don’t take the information in this post as investment advice and make sure you do your own research before investing. Cryptocurrencies are a very risky investment, never invest more money than you can afford to lose.