According to a cryptocurrency entrepreneur, the digital asset markets are cyclical — meaning that those who have been around for a few years or more should have expected this year’s price reversal. Muneeb Ali also argues that institutional interest in Bitcoin may be overstated.
The CEO and founder of Blockstack PBC., Muneeb Ali, appeared on BloombergTV to discuss the cryptoasset markets earlier today.
SponsoredBitcoin bounces back.
Why? It's a cyclic market.
If you've been in crypto long enough, you were simply expecting it.
P.S: Facebook Libra looks more like AOL than the open internet. pic.twitter.com/ELIdfzDODz
— muneeb.btc (@muneeb) June 25, 2019
Ali first commented on the cyclical nature of the digital asset market. He argued that this was the third or fourth time that the Bitcoin price has surged after a meteoric rise followed by a spectacular crash. For him, those investors and speculators that have been around the market for more than a few years should have expected the recent price reversal that has taken Bitcoin back above $12,000 for the first time in almost a year and a half.
Institutional Investors and Bitcoin
The entrepreneur was then asked if he felt that the cryptocurrency market was getting more institutional. He responded by stating:
Sponsored“I think there is progress on the protocol side. There are lots of high quality developers and engineers who are now building in the space that weren’t let’s say two years ago.”
However, in addressing whether or not there are indeed more institutional investors entering the space of late, he admitted that he didn’t know and didn’t believe others did either. Although there are “more sophisticated players” entering the market, these are not necessarily institutions, he stated.
Facebook’s Libra
The conversation then moved to the social media giant Facebook’s newly-detailed digital currency project, Libra.
Ali dismissed Libra as being comparable to what AOL was to the open internet:
“What Facebook has done is that they have a bunch of other companies in it, it’s almost like a federation, but it looks more like AOL than the open internet.”
He continued by stating that the Libra project may have a positive impact on the rest of the cryptocurrency market in that it will show potentially billions of people a taste of what cryptocurrencies look like. As has been argued by others in recent weeks, it may well provide something of an onramp for the space.
What about you think? Did you know that Bitcoin would bounce back after such a disastrous 2018? Let’s hear your thoughts in the comments below!
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