While we have entered a crypto winter, not everyone sees this as doom and gloom for the ecosystem. Several experts and advisors offer a more nuanced vision of the industry and its prospects, with one even saying it represents “a wealth creation opportunity we haven’t seen in 35 years,” according to a recent CNBC interview.
Ric Edelman, a former independent financial advisor, founder of $300 billion in assets under management Edelman Financial Services Edelman, and founder of the Digital Assets Council of Financial Professionals (DACFP), believes that Bitcoin and cryptos in general still present great financial promise.
He explained that it is “for the same reason stocks do: for long-term investors, price declines represent a buying opportunity.”
“The underlying features of blockchain technology represent huge improvements for commerce: businesses worldwide using the tech will be able to operate faster and cheaper, with greater security, transparency and inclusion. Just as the Dot-Com Bubble bursting did not cause the end of the internet, today’s crypto winter won’t translate into the end of Internet 3.0,” he told GOBankingRates.
Asked whether this crypto winter is different from the previous ones — a recurring theme for several commentators — Edelman said that the differences this time are that we’re in the midst of a global economic crisis, “suffering from excessive stimulus injected into the economy by governments worldwide in their fight against COVID-19, ensuing supply chain shortages, rising inflation and interest rates, a coming global food shortage, lingering pandemic and the big wild card: Putin.”
“Crypto prices also are reacting to the fact that there has been too much leverage in the system, and current deleveraging is causing prices to fall sharply — this is similar to the real estate crisis in 2008,” he said.
While he expects this crypto winter to last for the next 12 to 18 months, he also believes that by the first quarter of 2024, Bitcoin’s price could be $60,000 to $100,000. “Part of the reason: that’s when the next halving occurs,” he said.
Edelman also said that within the next five years, crypto will be a common element of diversified portfolios by the majority of retail and institutional investors.
He is not alone in taking a rather optimistic stance amid the crypto downturn. Most notably, Bitcoin bull and MicroStrategy CEO Michael Saylor announced the company acquired 460 additional Bitcoins on June 28, according to a Securities and Exchange Commission (SEC) filing.
“MicroStrategy has purchased an additional 480 bitcoins for ~$10.0 million at an average price of ~$20,817 per Bitcoin, As of 6/28/22 @MicroStrategy holds ~129,699 bitcoins acquired for ~$3.98 billion at an average price of ~$30,664 per bitcoin. $MSTR,” Saylor tweeted on June 29.
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