A senior editor for Barron’s magazine, Avi Salzman issued a report this week presenting leading money investors and the executives from the fasting developing cryptocurrency industry who are with the opinion that regardless of the recent decline in bitcoin price, cryptocurrency will certainly replace fiat.
Since January, the valuation of the cryptocurrency market has declined over 55 percent, from $829 billion to $372 billion. In January the market reaches its peak with the value of the market hitting close to a trillion dollars as blockchain projects remain at their initial stage and testnets including Tron and EOS going above $17 billion.
Since then, the price of bitcoin and other leading cryptocurrencies have dropped almost half in value. Usually, as the cryptocurrency market valuation drops by significant margins, a growing number of investors have started to be skeptical about the market and the possibility of a recovery of both major and new cryptocurrencies. However, big investors remain confident regardless of the sharp recovery.
At the beginning of this month, CNBC Fat Money contributor and BKCM founder Brian Kelly highlighted that he was surprised the market did not respond to the entry of the New York Stock Exchange (NYSE) and JPMorgan into the market. It is possible that the cryptocurrency market could have gone above the $1 trillion mark if these two major institutions have entered the market back in January when the market was at its peak.
A growing number of institutional investors, retail traders, financial institutions, banks, stock markets, and governments are active in the cryptocurrency industry than before while the market is almost at a yearly low. Even though most individual investors and new investors witness a sell-off period in a highly unstable period such as this, large-scale investors see this as a possibility.
The CEO at ShapeShift, Erik Voorhees noted:
“I’m all for financial companies getting involved in crypto. Crypto as a monetary unit is transparent and legitimate because it’s market-based, as opposed to what they do now, which is handling fiat, which is not transparent and not market-based.”
For Salzman, Voorhees stressed that it is certain that cryptocurrencies such as bitcoin and ether will replace fiat currencies such as the US dollar in time to come. Voorhees is not of the opinion that financial institutions will try to distract the effort as ultimately, business chase money. “That’s the point. It’s pulling them in,” Voorhees added.