Bitcoin woes don’t seem to end. Every day, a new regulatory pressure or scam unveils, which create ripples in the market. Even large-scale events like the Blockchain Week have failed to drive the momentum of the currency, or any other altcoin for that matter. As prices hover over the $8,000 mark, many people have now started speculating the direction of this market.
People like venture capitalist Tim Draper, who is one of the mega-bulls in crypto are expecting the price to go as high as $250,000 in just four years. Others seem unconvinced. Joe Davis, the strategy chief of Vanguard Investments believes that there is a ‘decent possibility’ that the value of the coin goes to zero. In these extreme bull and bear conversations, is there a more moderate voice in the spectrum?
Well, in current times, this seems highly unlikely. Michael Sonneshein, the managing director of Grayscale Investments, thinks that bitcoin could only have a binary outcome. His company manages the world’s largest crypto assets and sponsors eight digital currency trusts for investors too. Talking to Fortune, he said that there is no middle ground for the currency.
He said, “As we begin to look at assets like Bitcoin and the unbelievable adversity it’s faced over the last 10 years, every day that Bitcoin doesn’t go away, every day that Bitcoin overcomes a new challenge, for me that makes me feel that Bitcoin will do either one of two things.”
He added, “It will either survive and become all these amazing things that we think it can be, which will cause its price to be a lot higher. Or it is possible something else may come along that will displace it and Bitcoin goes to zero. It likely will have a binary outcome.”
However, as he manages crypto assets, he didn’t provide as price targets on the currency. Note that Grayscale is a part of the Digital Currency Group, which is one of the biggest cryptocurrency investors in the world.
The MD had several reasons to support his theory of an all-or-nothing outcome for the currency. He says that if the developers can continue innovating, the value of bitcoin will eventually rise. To do this, the blockchain and the currency must have more use cases, needs to become more desirable and improve on several grounds. He suggests that bitcoin should be treated as an open source protocol. He thinks that if the current crypto systems continue to improve and add new features to their blockchain, no new technology will displace them for a long time. This will help in value addition and keep the prices rising steadily over the long term.
Nobody clearly knows what will happen to the cryptocurrency industry. It could become the native currency of the internet or go completely out of use. It is important to note that the digital currency ha entered the most volatile and crucial phase of its life cycle. Not even the most seasoned investors and experts can predict where the currency will go in the next 3 to 5 years.
