As the world watches the crypto crisis unfold, one person is convinced that this crypto will emerge as the winner in the long run.
Former managing director of Blackrock, Edward Dowd, believes that the crypt crisis is very much like the dot-com bust of the early 2000s. And just like that time, something that is enduring and built on solid grounds will emerge as the “Amazon of crypto.”
In a recent interview, he admitted that the bearish crypto market will lead to a cleansing that will eventually benefit everyone. On Layah Heilpern’s podcast, he convincingly stated that Bitcoin will emerge as a leading contender for the title of apex crypto.
Will Bitcoin Ever Stabilize?
The crypto market has started stabilizing in June 2022. However, it is nowhere close to reaching the record highs it achieved in 2020. Dowd affirms that Bitcoin will stabilize after this bear run. Once the volatility lessens, most investors will come to see it for what it’s worth – the modern alternative to gold.
Bitcoin has long been referred to as digital gold by crypto enthusiasts. They believe that it is a safe asset that can serve as a hedge against global economic uncertainty and rising prices that affect the price of the US dollar. Like gold, Bitcoin has little utility per se, and its supply is limited by design. Bitcoin’s value fluctuates based on supply and demand rather than monetary policy. Inform, it is completely different from gold but similar in terms of an investment option.
However, people started questioning whether it really can hold its own as it has lost over half its value compared to its all-time high of $69,000 last year. But there is no denying that its growth has been stupendous. In May 2016, one Bitcoin was valued at approximately $500 while as of July 2022, its price hovers around $20,000 making cryptocurrency seem a risky, speculative asset. Concerns over the high electricity usage associated with bitcoin mining, which has raised environmental concerns, and the banning of cryptocurrency transactions by China has also weighed on bitcoin’s value.
What is Bitcoin Worth?
If Bitcoin matched private gold investments, financial services firm JPMorgan predicts Bitcoin’s price could hit $146,000 bitcoin in the long run. Meanwhile, Ark Invest’s Cathie Wood estimated the cryptocurrency could even pass $500,000 if institutional investors set aside just 5% of their portfolios for it. A recent study by Deutsche Bank found that about a quarter of Bitcoin investors believe Bitcoin prices will be over $110,000 in five years. Most experts are in agreement over the assumption that Bitcoin will cross the $100,000 mark but do not agree on when it will happen as the crypto crisis has them on edge.
Over the last week, Bitcoin rose by nearly 10% and was trading above $23,000. Experts are viewing it as an indication that the cryptocurrency is stabilizing in the aftermath of the crypto crisis. Although it has started holding steady, the market is not completely out of the danger zone just yet. The crypto market has increasingly mirrored the stock market in recent times. With the growth of institutional investors and financial institutions, Bitcoin has also correlated to the stock market. Rising inflation and economic uncertainty has had a detrimental effect on the health of Bitcoin. Analysts have indicated that higher interest rates will result in a recession.
Dowd, who firmly believes in Bitcoin’s resilience, admits that the crypto cleanse will take longer than expected. It will take even longer for mainstream adoption of the world’s most popular cryptocurrency. The crypto market saw the prices of Bitcoin, Ethereum, Solana, Cardano, Luna, BNB, XNP, and Dogecoin pick up in the last few weeks. But if you ask Dowd, Bitcoin is well on its way towards becoming everybody’s crypto. He believes that the “Amazon of the crypto era” will eventually surpass gold.
