Yes, recently fate has not taken it easy on Bitcoin. It seems as if the cryptocurrency is struggling as it keeps falling, reaching new lowest points every other month. As of the latest, the lowest Bitcoin has gone to is USD $3,400. Compared to the start of the year, the cryptocurrency has is down by over USD $15K – quite a time for traders and other cryptocurrency holders to undergo stress.
However, even at these odd moments, there are experts who seem undeterred as they stay fixated on their positive outlook of the falling cryptocurrency, Bitcoin. Tom Lee, co-founder of Fundstrat Global Advisors and a Wall Street crypto bull is very optimistic. According to Lee, this bear market is the “golden time” to be in crypto. He explained that Bitcoin is “bent, not broken.” as he took the mike at BlockShow Asia 2018. He says so because Bitcoin’s on-chain transaction value is massive – USD $1.3 trillion, which is in fact 2.5 times Paypal’s value and is expected to catch up to Visa. Furthermore, Lee estimated that BitMEX would make $1.2 billion in fiscal 2018 giving the cryptospace an “enviable” profitability.
Lee justified the collapse of Bitcoin and altcoins with three main factors: i) the contentious hard fork of Bitcoin Cash; ii) U.S. Securities and Exchange Commission (SEC) forcing ICOs to return funds to investors, and iii) the overall poor condition of the global markets.
He explained, however:
[We] have a price correction taking place, which has caused the price to fall even below its 200-day [a popular technical indicator used by investors to analyze price trends], but if you’ve got time, it will arise. It will not happen within three months, or one year, but in two to three years, and this is the golden time to be in crypto. As soon as Bitcoin crosses its 200-day, we know there will be a flood of money coming.”
Another expert who seems very optimistic for cryptocurrencies is Anthony Pompliano, the Founder & Partner at Morgan Creek Digital and also the host of the podcast Off the Chain with Anthony Pompliano, where investment strategies and digital strategies are resonated by investors from across the world.
Pompliano’s opinion backs that of Lee. In a recent interview with CNN, Pompliano compared the transaction values of Bitcoin and Mastercard and concluded that with the value perspective “it’s right there at par with Mastercard,” later mentioning that Bitcoin has been the “the best performing asset over the last 10 years.” Pompliano emphasizes that rather than looking at the price of Bitcoin, a better perspective lies in its transaction volume value which more or less competes with that of Mastercard.
On Twitter, Pompliano makes sure to remind over and over about the long-term outlook of Bitcoin and cryptocurrencies in general. For instance:
Pay attention to the Bitcoin haters taking victory laps right now.
Screenshot their tweets. Bookmark their blog posts. Remember the names.
They’ll be wrong just like every other time. Bitcoin isn’t dying.
Those who believe and remain disciplined will be rewarded handsomely.
— Pomp 🌪 (@APompliano) November 25, 2018
As for the near distant time, Tom Lee claimed that Bitcoin will do “very well” in the coming year however, it will tend to struggle for a while; he encourages to buy at a bear market. Speaking to cointelegraph, he said:
“The only time the return is better than 7 percent is when you buy at a bear market.”
That would be now. Later on, Lee also said that Bitcoin will soon become “an emerging asset class.”
Similarly, Pompliano asserts his followers to make fearful, but smart moves:
Important ideas right now:
– Be greedy when others are fearful
– Buy when there is blood in streets
– Don’t sell what is on sale
– Concentration builds wealth, diversification preserves wealth
Simple ideas. Hard to execute.
The choice is yours.
— Pomp 🌪 (@APompliano) November 28, 2018
Agreed; it is easy to say, crypto will rise and profits will multiply, but it must kept in mind that crypto investments must be made for the long run. Hope may have arose as Tom Lee, considering the crypto coin’s social network value dropped in a prediction: a worth of USD $10 million per Bitcoin in 10 years.