Guggenheim Partners founder Scott Minerd expects Bitcoin (BTC) to continue to retreat from the price chart as it has repeatedly bucked at its key support level.
Minerd, who attended the World Economic Forum in Davos, Switzerland, said in an interview with CNBC’s Andrew Ross Sorkin. have a discussion If Bitcoin does not find support at $30,000, it is also possible that it will fall below $10,000.
“It’s more like a symptom and it’s like a canary in a coal mine. We are seeing cryptocurrencies collapsing. In my opinion, there are many more cons.
If you look at Bitcoin, which is more tech than anything else, $8,000 is the ultimate bottom when it continues to drop below $30,000.”
The Chief Investment Officer (CIO) added that as the Fed raises interest rates, it will put pressure on the entire crypto industry, which it believes has many worthless projects.
“I think there is a lot more room for a decline, especially since the Fed is limited. And let’s face reality. Most of this currency is garbage, not money.
Most cryptocurrencies are garbage [but] There will be survivors, and cryptocurrency is the future.”
Just as no one could have predicted the ultimate winner during the internet business craze that began 20 years ago, Minerd explains, he is not certain that the two leading cryptocurrencies, Bitcoin and Ethereum (ETH) will eventually win. .
“I think Ethereum and Bitcoin will survive, but I don’t think we’ve seen a dominant player in crypto yet.
It’s like an internet bubble. Yahoo! And America Online (AOL) was the top winner. I can’t say if Amazon or Pets.com will be the winners.
We didn’t have Google yet. I don’t think there is a prototype suitable for cryptocurrency yet because America Online, the dial-up service, is dead.”
Minerd concluded, voicing skepticism that existing crypto assets could meet the traditional expectations of the investment class. He ultimately awaits the development of future technologies to provide what is needed for the reputation and value of the industry.
“The definition of a currency is that it is a store of value, a medium of exchange, and a unit of account. None of these will pass. They don’t even pass on one criterion.
There will be a point where technology will advance and we will be able to create an ecosystem where we can actually use these for trading purposes and where people feel comfortable that they hold their value.
Stablecoins are an interesting undertaking in that respect, but to be honest, if we exchange them at fixed rates like fiat billboards, they will be regulated like money.”
Last summer, when Bitcoin was trading at the $30,000 level, Minerd said that BTC was at risk of a major correction.
As of this writing, Bitcoin is up 1.73% in the last 24 hours and is trading at $29,692. A month ago, BTC was priced below $40,000 and briefly surpassed it on April 25th and 26th.
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