There is no stopping Bitcoin enthusiasts. Regardless of what happens in the world and how the market reacts to major economic and political events, some people still hold on the core principles of the currency. One of them is crypto investing strategist Meltem Demirors, who talked to CNBC and expressed her strong faith in Bitcoin. She noted that real growth in the coin will happen in time.
Bitcoin Has a Long-term Narrative
Demirors, chief strategy officer at digital asset manager CoinShares, said that it is hard to pin down the narrative of something like Bitcoin, but it can be compared with early Internet stocks, whose traction will come in time. According to her, “New technologies that shift the paradigm take a long time to really understand.”
The July rally of the currency has not been sustained, especially since the Securities and Exchange Commission (SEC) delayed a decision on Bitcoin ETF products. After hitting an all-time high of over $19,000 in December last year, the currency has been struggling to achieve even 50 percent of that.
In fact, the disappointment over the delay in SEC’s decision was so much that the collapse of Turkish lira, which hit its all-time low against the US dollar on Monday, August 13, didn’t move the prices up significantly. It could have been an opportunity for Bitcoin to establish itself as a safe haven asset, comparable to gold, but it has not done so.
Positive News Fails to Create an Impact
The Intercontinental Exchange recently announced that it would create an open and regulated ecosystem for digital assets. It has been a week since that announcement, but nothing favorable has come off that announcement. Prices failed to move even as crypto bulls hailed the decision as a major step toward making cryptocurrency mainstream.
Demirors thinks that this is because of a narrative problem with Bitcoin. She said:
“The narrative around bitcoin is still really hard to grasp. Really the only metric we have for most cryptocurrencies is the price, and price is such an imperfect metric. What does actual utilization look like? That’s really the struggle for crypto right now.”
She suggests that both retail and institutional investors should ignore price volatility and focus on long-term value, similar to early tech and Internet stocks like Microsoft, Intel or Amazon.
“What we saw in crypto was this massive run-up, where everyone got ‘FOMO,’ or fear of missing out, as we like to say. What it caused is a speculative bubble.”
Demirors also believes that the Bitcoin bubble has already burst and now capital will be employed to serving a real purpose and building real businesses.
Crypto Bull Dismisses Panic Statements, Claims Bitcoin Value Will Come in Time was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.