In the past week, bitcoin has been seen spiking up and down frequently. After trading above the mark of $6,800 on September 22, bitcoin is again down by a significant amount and is now trading at around $6,463, as per CoinMarketCap.
The question is, where is this market headed? It has been quite some time since bitcoin has been lingering around in the $6,000 range. Are we going to see a crypto boom or crypto collapse anytime soon? Thomas Power, a well-renowned personality in the blockchain arena and the board member at Blockchain Industry Compliance and Regulation Association (BICRA), shared his views with BlockPublisher.
Talking to BlockPublisher regarding the direction of bitcoin from this point onward, Thomas Power described a timeline as:
Heading to $3000 by Christmas. 2018 bottom, 2019 top, 2020-2022 crash old economy and 2020-2022 crypto boom.
Thomas held by his previous remarks of bitcoin dipping down to $3,000. As suggested by Thomas, this year, the crypto market is going to see a decline as bitcoin bottoms. But as developments are being made in the crypto world day in and day out in the form of the emergence of platforms like Bakkt and increasing demands of crypto-linked exchange-traded funds (ETF), the market is likely to gain an upward thrust next year.
Thomas predicts that 2019 is the year when the crypto world is going to see the top. But this scenario is largely dependent on a lot of issues that need to be solved first in order for this market to see this outcome. Thomas pointed out two of the major factors upon which the success of this market largely depends. One is the establishment of a crypto-linked ETF and the second is the placement of a regulatory framework on the ICO world.
Can’t happen till all bugs fixed [until] end 2019. ETF approved by SEC 2019. ICO regulated like IPO 2019.
An ETF will pave out a way for the institutional investors to enter this market more easily and as a result, a large amount of money will pour into this market making it more stable. General adoption is also expected as a result of this development.
On the other hand, lack of a regulatory framework in this market has also led to a lot illegal activities in this space. Illegal and fraudulent activities linked to initial coin offerings are innumerable. Such activities play a major role in marring the credibility of this market. Another reason due to which investors hold back from investing in this market. Once a regulatory framework is in place for these ICOs, just like initial public offerings (IPO), cryptos are likely going to see more widespread adoption.
Thomas also stated that the mainstream adoption of cryptos is likely going to come after an economic crash that is expected in the next couple of years. The traditional financial structure is already facing a lot of difficulties and a time is going to come when people are going to look for alternatives to this framework. It is likely that cryptos will emerge as the next “big thing” in case of such a scenario.