Many crypto experts have emphasized that cryptocurrency prices this year are in a correction stage. A stage where the bubble has burst and the price is showing the real worth of the asset. Mike Novogratz, Galaxy Digital Founder and CEO, corroborated that assertion in a Bloomberg interview. He said this is the correction stage and that the bubble or the mania in the cryptocurrency market was at least built on something real, which is similar to the early years of the internet. He also says that the end of the bear market is near.
Why is there a cause for optimism?
I see progress been made on the technology; I see progress been made on the entrepreneur side and I see progress been made on the institutional infrastructure side he explained.
And his assertion is not far from the truth. We have seen major development on the Bitcoin protocol this year. In 2018, we have seen:
1. Adoption Of Segwit
Segwit helped slimmed down transactions by making them lighter, because they no longer contained witness information, and also supported second layer development, such as the lightning network. Even though Segwit was accessible in 2017, almost all major exchanges and wallets, such as Coinbase, Bitfinex, Ledger, and Trezor, adopt SegWit addresses in 2018 alone. The total adoption increased from 10% to 40% of addresses in the last 12 months.
2. Institutional Infrastructure
We had companies built the necessary infrastructure for the upcoming institutional investors in 2018. We’ve seen players such as Fidelity Investments, Yale University, the New York Stock Exchange, and Square Inc. show interest in the space. Mike Novogratz also confirmed that because of this we could expect institutional investors by the first quarter of 2019.
3. Adoption of the Lighting Network
The Lighting Network has helped bitcoin with scaling and processing more transactions. The network has also gone from 0 to 4400 nodes over the course of the last 12 months.
4. Increase in Hashrate
Eventually, a growth in hashrate is a sign of a healthy network. It makes it increasingly more expensive to execute a 51% attack on the network. We saw an all-time high in both hashrate and difficulty in 2018.
Bitcoin as a store of wealth
Mike Novogratz is also positive that Bitcoin will eventually become the store of value. He further explained
I’m fairly certain that we will have a digital store of wealth. I think it would be bitcoin that would be a digital store of value. I’m fairly certain that we’ll have Web 3.0 – this decentralised worldwide computing system that process and authenticate data. And I’m fairly certain that we would have lots of tokenised objects.
For predictions about the value of the cryptocurrency in the foreseeable future. He said “we are going to be between $3000 and $6000.”
What are your thoughts? Is the end of bitcoin bear market actually near? Share your thoughts in our comments section.