Sofiko is a freelance fintech copywriter at Coinspeaker. With a Bachelor degree in International Business and Economics, Sofiko has been deepening her knowledge of an agile innovative industry primary focusing on the robust blockchain technology and cryptocurrencies. As a bank employee, Sofiko particularly keens on crypto and blockchain integration into the established banking systems.
While some remains optimistic about the current market decline, crypto-naysayers take this occasion to sentence Bitcoin and the rest of crypto-waggon to death.
No one can be sure what the future holds, yet everyone like to bid on it. The cryptocurrency market has always been a top-notch topic of these bidding.
Due to its highly volatile nature and an immense amount of capital circulating in the industry, the cryptocurrency market more resembles the Field of Wonders rather than traditional financial realm.
At the times when Bitcoin price had been hitting a five-fold increase overnight, you only needed a little luck and timely action to make fortune. Yet with a drastic fall of Bitcoin notorious crypto-market lost its shine for one-day investors and long-term players have taken their positions at the helm. Maybe the crypto-hype is over, but the industry is gradually settling down primary focusing on the blockchain technology.
Galloway Says Cryptos Will Lose in 2019
However, a professor at the University of California, Scott Galloway believes that the peace won’ t last long and the coming 2019 will go harsh on cryptos. According to his theory, the rapidly emerging markets like crypto, VR and AI tend to move by cycles regardless of any specific catalysts. What he means is that in 2018 these markets have failed to deliver sustainable rate of growth, while high market valuation of companies involved in the sphere is a residual effect from booming years.
As an example of his cycle theory, Galloway discusses 3D printers market. The figures show that 3D printing has undertaken a major correlation in 2014 and then in 2016 it reached the bottom low. However, Galloway’s cycles say that 3D printing is going to win over its market share in 2019, while VR, AR, AI, and cryptos that had explosive years prior to 2018 will go from bad to worse.
Scott Galloway said: “VR and crypto go from bad to worse. AI fails to live up to the hype. 3D printing rises from the ashes. Smart cameras become a hot category.”
He explains his point saying that many emerging markets alike of crypto, VR, augmented reality (AR), and artificial intelligence (AI) are highly unaffected by most industry developments and news because the value of digital assets mostly moves by sentiment rather than short-term events. As a result, it is difficult for new technologies and markets to undergo massive changes in the short to mid-term and investors become easily impatient.
In his thoughts, Galloway is not alone. One of Bitcoin pioneers seems to give up on the crypto-industry. Thus, Jed McCaleb, known for cofounding Mt.Gox, Ripple and Stellar, called Tron and 90% of other crypto-related projects ‘just garbage’ in a recent interview to Yahoo! Finance.
Crypto-Community Disapproves Galloway’s Prediction
While Galloway might be accurate in his assessment of other struggling industries, the crypto-market could be an odd one out as many large-scale financial institutions are truly committed to the cryptocurrency sector.
For example, the Winklevoss twins are not going to give up on making Bitcoin exchange-traded funds (ETFs) a reality. They have publicly expressed their optimistic attitude to Bitcoin and the future of cryptos during the latest AMA session on Reddit.
On the other hand, Jeremy Allaire, the co-founder and CEO of the fintech startup Circle, has recently been very optimistic about the future of Bitcoin, even despite the recent downturn in the cryptocurrency’s value.
Cryptocurrency bull Tom Lee also do not want to lose his faith in Bitcoin’s bright future. Although his prognoses were not very precise, Lee claims that Bitcoin is underestimated, and its fair price should be about $10,000 above where it is trading now.
After all, it can be inferred that no matter what, the cryptocurrency has wide community support and so far the market does not seem to match directly with any predictions made by industry experts.