Investment guru feels that Bitcoin price drop is a normal correction
Nigel Green, founder and CEO of global financial advisory firm deVere, isn’t worrying about the Bitcoin price drop. In a press release obtained by BlockTelegraph, Green recently commented on the crypto market, and he feels that this is a normal correction.
Bitcoin traded on a high of US $8,507 on July 24th, but had a nearly 26% fall during the second week of August. Other cryptocurrencies followed suit, and the bearish trend continued. Crypto investors and observers are noticing this sustained bearish market.
Knowledgeable observers are analyzing reasons for the bearish crypto market. The US Securities and Exchange Commission (SEC) has delayed their decision on a proposed Bitcoin Exchange-Traded Fund (ETF). Such recent events have contributed to the trend, while there are other long-term factors like volatility.
For example, the recent hack of the South Korean crypto exchange Coinrail points to a long-term vulnerability. Hackers regularly target the servers of centralized exchanges.
The 2017 excitement about ICOs did create a significant bubble. The SEC continues to probe many blockchain start-ups. They are also investigating existing companies that may have unfairly exploited this craze.
Bitcoin networks’ energy consumption remains high, attracting negative media coverage. Scam ICOs have also dented retail crypto investors’ confidence, and continued regulatory uncertainties in several major economies add to these feelings. A spate of negative news and uncertainties could make you think that the bear market is here to stay.
Negative sentiments affect the crypto market more than the traditional market due to its size. Hence, when an investment expert like Green shrugs off the recent sell-off, it assures many retail investors.
A part of growing up
The thrust of Green’s viewpoint is that the crypto market is young, needs time to mature, and investors need to stay with the technology for the long-term.
You can intuitively identify with what Green says. We saw the dot-com bubble burst; however, the internet has become an inseparable part of our life! Blockchain and cryptocurrencies are also going through a similar phase of growing up. Bitcoin price drop and frequent crypto market volatility are signs of it, Green says.
Green has consistently held an optimistic view of digital currencies. He believes that in a digital and global world, they have value. Green has previously spoken about how governments, businesses, and regulators are acknowledging cryptocurrencies.
Current events are proving Green right. Consider the varied blockchain use cases; for example, Walmart is using it in the food supply chain, and UPS plans to improve global logistics with it.
We see the process of maturing in the blockchain crypto space already. MakerDAO and Wyre are trying to address the volatility in the crypto market. Ethereum is working on their Casper protocol for transitioning to the Proof of Stake (PoS) consensus algorithm. This algorithm has no crypto mining, requiring less energy.
Blockchain start-ups are increasingly complying with securities regulations. Indiegogo has offered their tokenized security investment instrument. Local governments are also seeing the value of blockchain; lawmakers in Wyoming have passed crypto-friendly laws.
Green’s company, deVere Group, has more than 80,000 clients in over 100 countries. They have a crypto exchange app called deVere Crypto, which lists prominent coins like Bitcoin, Ether, and Ripple.
