Bitcoin price has been sliding down for 14 months now and 80 per cent of valuation is lost in that time. The crypto winter has a debilitating effect on the nascent industry. With investors getting cold feet, some $400 billion worth of world’s cryptocurrencies has been wiped out.
In such grave times, a Chinese billionaire Zhao Dong, one of the largest over-the-counter traders of bitcoin, has suggested people stock up on Bitcoin and wait with some patience. He had previously predicted that the price of bitcoin will reach around $50,000 by 2021.
China has been an important country when it comes to bitcoin mining as its dominance in this gives China too much control over the burgeoning cryptocurrency. It is reported that Beijing-based Bitmain Technologies mines more than half the world’s bitcoins.
Zhao had also warned about the crypto winter that it might drag on in 2019 till the big bulls return to the market in 2021. “In the bull market, I don’t persuade people to buy bitcoin, because it seems easy to make quick money but in fact, it is not. Now [in the bear market], I start to talk people into buying bitcoin,” Zhao added.
Bitcoin and cryptocurrency fever gripped the world in 2017 with some major coins making their way into the market. Bitcoin price after the epic 2017 bull run brought the expectations that big institutions and banks would support it.
Even after unsteady bitcoin market, Jack Dorsey, founder and CEO of Twitter and Square, has been not much concerned. He believes that Bitcoin will one day make for the native currency of the internet, as mentioned on Forbes.
Similarly, Wall Street titan Mike Novogratz, CEO of Digital Galaxy, also seems to agree that Bitcoin is grinding along the bottom, but will see a significant rise. He states that recovery is happening due to the transition from retail to institutions.
According to U Today, Novogratz believes that Bitcoin is not going to bubble, and in future, its rise will be slow and steady. While comparing between Bitcoin and gold, he claims that Bitcoin as a digital gold is a good example of value storation.
Due to the decline in bitcoin price, many cryptocurrency and blockchain startups had to slash their jobs or shut down completely. This led the investors looking over the horizon for signals of which way the market may move. Many bitcoin investors and traders are looking forward to Bakkt bitcoin platform and Bitcoin ETF approvals. The Bakkt bitcoin platform will offer bitcoin futures trading and open up a wider retail market.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]