Cryptos have their backs against the wall right now as the entire market has come crashing down. At the time of writing, bitcoin is floating around $3,973 (as per www.coinmarketcap.com), dropping down from the $6,000 range it enjoyed last month. As bitcoin is the largest cryptocurrency of the world, most of the smaller cryptos also follow along its trend. Bitcoin has dropped down below $4K and this major drop has people talking about its future. Many investors have lost large amounts of money owing to this drop.
In order to get a hunch of what might happen next, BlockPublisher got in touch with Thomas Power, who previously predicted that bitcoin is heading for $3,000 when it was looming around in the $6,000s. Thomas is also a board member at BICRA, short for Blockchain Industry Compliance and Regulation Association.
Talking about what’s in store next, after bitcoin dropping in $3,000s, Thomas said, “Miners Merge.”
Thomas suggested that out of the 21 companies that control the bitcoin mining such as AntPool, BitFury etc., only two will emerge out as the winners.
Also talking about where the market is headed, Thomas said:
Up after the fiat crash of 2020-2021, commences autumn 2020. Crypto can’t recover and make its mark in society until fiat crashes.
The trust of the general public in cryptos is relatively low as of now. For crypto to replace the heavily embedded fiat framework of today, it needs to establish trust regarding its credibility in the investor community and the general public. As suggested by Thomas, this can happen if the fiat framework of today crashed. If this happens the need for an alternative will rise strongly which might push cryptos into the mainstream financial market.
We are already seeing countries like Venezuela, Zimbabwe, Iran etc, go through issues regarding their traditional financial frameworks. Besides this, a global economic crash is also being predicted by many financial experts which might just be around the corner. Just as the global financial recession of 2008 put bitcoin in the eyes of the public for the first time, this next crash could prove to be beneficial for the entire crypto market moving forward.
One thing is for sure, fiat has its roots embedded in our current monetary framework very strongly. It will be very hard for cryptos to replace a system that has been in place for decades. For them to go mainstream, there is the condition of the current financial framework crashing down. Until that happens, it will be very hard for the cryptos to get integrated into the lives of the general public and revamp the current financial framework.