Founder of Digital Currency Group (DGG) Barry Silbert (Barry Silbert) spoke about his vision of the current state of the cryptocurrency industry. One of the earliest supporters of the development of the industry and the first bitcoin investors, the venture capital owner of blockchain, the company where my daughter — Grayscale Investment and Coindesk, gave an interview to journalists of the channel CNBC, talking about the influence of hard forks of Bitcoin Cash, and other factors on the dynamics of prices of bitcoins.
In response to the question about the recent split of the network into two BCH blockchain Bitcoin Satoshi’s Vision (SV) and Bitcoin ABC Silbert said:
“The fork is a red herring”.
CEO DCG agreed with the interviewers that the industry hurts itself with this fork. However, he suggests that similar challenges from competing currencies winning for bitcoins (or any other currency which, ultimately, will be the world’s most successful digital currency).
“If bitcoin becomes the winner, he is tested in “battle”. It was challenged by the competing cryptocurrencies, it was questioned by internal struggles… no matter How he was called — Cash for Bitcoin, or Ethereum, or zcash for — whatever it is. Whoever becomes the winner in the future, he will earn this status,” — said Silbert.
The entrepreneur spoke about other aspects that affect the current price of bitcoin. First, from his point of view, the collapse in share prices of “traditional” technology companies has been associated with the capital inflows in cryptoprocessor. He believes that the appetite of investors in respect of such companies has fallen commensurate with the increased risk when they lower the rate of their shares. This is due to the fact that many such investors, tech companies like Apple or Amazon, both physical and digital assets.
Another factor, according to Silbert pulled prices down, is the exploding bubble in the market ICO.
“What we see at the moment is perfectly still on the market ICO. I think that pushed the price to historic highs last year, is ICO-madness. ICO Market is dead. It’s over,” said Barry Silbert.
He said that many of the projects that gathered last year, huge sums of money, cashed them — hence the huge pressure. The situation is aggravated by the fact that different cryptocurrency funds began to receive requests from investors demanding the ransom, forcing them to sell.
That absorbs a considerable share of these assets is institutional money, sure Silbert. On the other hand, it takes time to “translate” them into the category of higher prices, since a large share of OTC trading platforms (OTC). Although the guest of the program mentioned that the exchange and OTC markets influence each other, he stressed that large amounts of OTC not affect the price of bitcoin immediately.
“Was a major shake-up in all directions, but what I saw over the past few weeks is more significant rates of institutions who are now beginning to be included in the space,” — said the businessman.
Silbert also referred to the question which price a — trillion dollars: where is the bottom — the real level of support?
“All we can do is look at past results — bubbles and correction. This is the fifth, sixth or seventh time that has happened, and we got used to it. We see this as a fantastic opportunity.”