Almost all of the currencies are showing signs of plunges making the overall market red. Major losers, in the long run, include Ethereum, whose price has once again touched the $100 mark. Once again bringing it to the valuation where it stood before the Ethereum Rebound. Other losers contain BTC, which is now once again being traded under $3,500 at press time according to BlockPublisher’s index.
The trading volumes have dropped significantly with the bloodbath and plunges of the currencies. People have started resorting to Hodling and have eliminated the utility of Bitcoin from the equation. David Gold, the blockchain venture capitalist, and dotcom entrepreneur believes that the volatility won’t escape the crypto market until more commerce applications are brought and more use cases for the currencies are defined instead of price speculations. He stated, talking to BlockPublisher,
The original vision of bitcoin was a means for the decentralized exchange of value… not rampant speculation. The market for crypto will remain thinly traded and volatile until and unless the distributed value that tokens and coins represent start being used in commerce much much more than they are today for the exchange of value and utility. And blockchain tokens/coins will never achieve broad use until it becomes much more user friendly, secure and psychological comfortable to move decentralized value from one party to another.
David also gave his opinion on the ETF case. He stated,
There is more at stake for the SEC than simply if bitcoin markets can be manipulated or not. Decentralized value threatens regulators in a variety of ways. So, approval of a Bitcoin ETF which would further solidify the future of decentralized value is not in regulators’ interest. I suspect that other countries will approve ETF and mutual fund like vehicles for crypto before the U.S. and only later will the U.S. get on board so as to not be left behind.
But, as most experts speculate that an ETF might not actually have that much of an impact like other forces could, David had the same opinion. According to him, the price would see an upward swing but in the long run, it might nt have that much of an effect and the hype might end in disappointment. He stated,
If an Bitcoin ETF is approved there will be an at least temporary bump in the price of Bitcoin and possibly other tokens/coins. But, long term, providing an old world vehicle to invest in Bitcoin through a centralized company will not bring Bitcoin or decentralized value into the main stream. Only by focusing on making decentralized value easier and safer to use will it ever achieve its true potential.
Upon inquiry on when he thought the ETF would be approved, he stated,
I’d guess it will be another 1-2 years and likely only after other countries approve similar vehicles.
Although speculations have gathered the ETF, it is still considered the light at the end of the tunnel. But only time will tell whether or not an ETF would bring huge trading volumes and bull runs to crypto.