Since the beginning of the year, the price of Bitcoin has dropped by almost 80% from a maximum approaching $ 20,000 in December 2017. For some, the fall in Bitcoin prices caused concern and led to massive sales, as well as negative and bad mood regarding blockchain-based assets.
Just yesterday, EWN reported a significant number of crypto startups that were forced to either close the project or significantly reduce the staff because of the ongoing bear market.
During the Crypto Summit, held on Friday in London by Bloomberg financial agency, a number of participants suggested that in the near future, the prospects for cryptocurrencies are tenuous at best, but the industry is just experiencing a temporary decline, which ultimately will lead to significant growth.
Speaking at the summit, Chief Investment Officer at CCL Investment Management James Bevan gave hope to cryptoinvestors:
I do not regard this period as an existential crisis, I simply regard it as an obstacle on the road.
Interestingly, the panelists identified areas of stable coins and digital contracts as two possible ways to develop cryptocurrency in 2019 and beyond.
Although no one predicts an immediate recovery in cryptocurrency prices, because Bitcoin has lost about 80% of its value this year, the summit participants consider the current recession more like a pain in growth than a "severe death". In fact, the two growth areas for the industry will be related to low volatility tokens, known as stable coins (Stablecoins) and digital contracts that represent ownership of assets, such as real estate or stocks.
Given the level of innovation, security, and digital functionality embedded in cryptocurrency technology, the coin industry as a whole has an established precedent that will be difficult to completely eliminate. Traders who are still fighting back due to the lack of price protection and are looking for a more stable form of Bitcoin to trade will find more advantages in the less volatile nature of stable coins.
And what do you think about this?
