Apprehensions of a complete bottoming out of cryptocurrency markets have subsided. Over the past few months, Bitcoin demonstrated resilience. Investor confidence is growing. Shervin Pishevar was not concerned by the beginning year Bitcoin price plummet. At the time, he predicted a slow recovery.
What Shervin Pishevar was alluding to was that markets need to go through maturity phases. This brings growing pains. One of the most evident factors of this is when cryptocurrencies fell simply because investor fears permeated traditional markets. Since cryptocurrencies offer new solutions, they should respond slower to traditional market price moves.
The slower response of the cryptocurrency market to falling global market prices is simple to explain. Cryptocurrencies provide modern solutions while offering a hedge against conventional business. In 2018, cryptocurrencies have demonstrated their viability in this aspect. However, it is clear that even Bitcoin’s technology is not yet well enough globally understood. If it were, cryptocurrency prices would be more independent than they are today.
When Shervin Pishevar discussed the slow recovery of Bitcoin’s price he illustrated two important points. Both are related to the youth of the market. First, there are simply not enough investors in cryptocurrencies. The market needs to become more liquid. Increased liquidity makes market manipulation more difficult. Another factor is that of the education of investors. A higher level is required than in traditional markets. Also, its newness and adverse events (ie. hacks and scams) make some hesitant to dedicate the requisite time to become well informed. Cryptos are making great strides in both of these aspects.
Bitcoin’s dominant share of the overall cryptocurrency market capitalization is worth noting. While ICOs threaten to take a piece of the overall market cap, they also tend to bring in new investments. ICOs demonstrate new approaches to existing problems. This was not the case a short time ago when scam ICOs were making headlines.
With this new found respect. Shervin Pishevar recognized underlying stability in reputable cryptos like Bitcoin, Ethereum, and the developing EOS which offer real value for digital transactions. This is the reason for expecting future market growth.