The Strategist

Experts: Recent drop won’t affect Bitcoin’s fundamental value

11/26/2018 - 13:33

A significant drop in Bitcoin and other cryptocurrencies in 2018 do not change the fundamentals of Bitcoin in any way, according to the Canadian analytical-research company Blockchain Intelligence Group (BIG).

The decline in the crypto market this year was caused by a combination of factors such as a large concentration of inexperienced investors entering the industry in 2017, regulatory uncertainty, and well-known principles of supply and demand.

“If you combine all these factors together, and also add an insufficient understanding of the average user of the principles of the industry, we will come to the reasons why we see low prices for cryptocurrencies today,” said Lance Morginn, head of the Blockchain Intelligence Group.

However, this decrease will not change the fundamental value of Bitcoin, according to Morginn. “The good news for us is that while cryptocurrency has value and is used as a payment methos, our services are more than necessary for our customers. Therefore, in the long run, this decline does not affect us. The fundamentals of Bitcoin remain the same, ” he noted.

Chinese OTC-trader and the founder of Dfund Zhao Dong is also optimistic about the future of the main cryptocurrency. He is confident that in 3 years BTC will break $ 50,000.

Zhao Dong believes that now is the right time to buy Bitcoin and advises investors to buy it with any available funds. The rush isn’t present, and the public interest in digital assets decreased significantly. However, investors should always act prudently.

The trader does not deny that in the near future Bitcoin may still fall in price, but he is convinced that you need to buy coins every time a new minimum is reached.

Spencer Bogart, Partner of Blockchain Capital venture capital firm, said that cryptocurrency opportunities are still huge, despite the current market downturn.

Head of the famous Binance cryptoplatform Changpeng Zhao has also remained optimistic all week and assured that Bitcoin would keep its position on the market. "I will say that cryptocurrency will definitely grow 1000 times or more!", - he wrote on Twitter.