Bitcoin continues to decline, and even the market as a whole. An investment strategist, however, sees it as a paradigm shift technology that takes time to gain value.
Bitcoin marked another trading day in negative territory, with the remainder of the overall market still performing worse. On the plus side, bitcoin dominance is rising despite the falling price. Bitcoin’s dominance now stands at 53.6 percent.
It is a paradigm shift
According to Chief Strategy Officer of digital asset management company CoinShares Meltem Demirors, Bitcoin is a new technology and people will take time to fully understand the process. In the interview with CNBC’s Fast Money, she said:
New technologies that change the paradigm need a lot of time to establish in people’s minds.
She also noted that there are no appropriate metrics to measure the performance of the technology apart from the price:
Bitcoin is still hard to understand. The only measure we have for most cryptocurrencies is the price and the price is an imperfect metric. What does the actual usage look like? That’s really the fight for crypto right now.
Do not pay attention to the price
In the investment strategy, retail investors should ignore the price and consider cryptocurrencies as early Internet stocks of companies such as Intel, Microsoft or Amazon. She also reiterated that the massive run-up of the cryptocurrency market in late 2017 and early 2018 was caused by the hype.
What we saw in Krypto was this massive run-up, where everyone got ‘FOMO’, or the fear of missing something, as we like to say. The root cause was a speculative bubble.
Jonathan Cheesman, Partner of Digital Asset Management company’s Distributed Global has also shared the belief that FOMO was a great release and unfortunately most purchases are now in negative territory.
In addition, the investment strategist believes that the crypto-currency space is changing from a speculative bubble to a “real-life, real-world business” as more and more infrastructure develops around the crypto market .