Moneycontrol News
Founder-CEO of the world’s biggest crypto-exchange Binance, Changpeng Zhao, said bitcoin still holds a positive position despite 70 percent fall since early 2018.
In an interview with a cryptocurrency researcher and reporter in Zug, Switzerland, Zhao said the cryptocurrency sector holds a better position than the past year in terms of infrastructure, volume, mainstream interest and price. He said, “Just checked, btc price was $2500 a year ago, today $6800. Trading volume for btc was 780m a year ago, today is 3.4b. There you go.”
As reported by CNN, the price of bitcoin had increased by more than 2,150 percent in 2017, ranging from $890 to $20,000. The volume of bitcoin has increased five-fold as compared to mid-2017 as a result of surge in demand. In mid-2017, there wasn’t any proper infrastructure in cryptocurrency sector for retail and institutional investors. Since July 2018, there is an institutional market called Coinbase Custody, with which academic institutions, hedge funds and pensions can purchase millions of dollars worth of digital assets like ether and bitcoin.
Financial institutions like Morgan Stanley, JP Morgan and Goldman Sachs have come out with their intent of facilitating the growing client demands towards cryptocurrencies. According to Goldman Sachs CEO Lloyd Blankfein, consensus currencies (like cryptocurrency) can also emerge as dominant mediums of exchange. He also pressured on the negativity of the thought that cryptocurrencies could not work because of their basis being new fundamentals and principles.
The drop in the prices of bitcoin recently was due to the bubble of retail investors. Fear of missing out will be running among large-scale investors and institutions with the recognition of cryptocurrencies as an emerging asset class by banks.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
