The cryptocurrency market is still in battle with bear markets. However, crypto bulls are predicting that it will rebound sooner than expected. Tim Draper, an investor who is a billionaire, claims that bitcoin and other cryptocurrencies will initially recede but then will rise to become a $80 trillion business within the next 15-years.
Drapers spoke at the DEALSTREETASIA PEVC Summit 2018 in Singapore Wednesday. He noted that bitcoin’s current phase is similar to that of internet technology which began slowly but eventually took over the world. He said:
“The internet started in the same way, it came in big waves and then it kind of came crashing down, and then the next wave comes concentrated but much bigger, and I suspect the same thing will go on here bitcoin.”
Over the years, cryptocurrencies have seen a surge in value and acknowledgment. The cryptocurrency market was worth approximately $800 billion in December 2017. The value of the cryptocurrency market has been steadily declining since then. Questions about its volatility have increased and it is still uncertain if it will be recognized as a legitimate financial asset.
Draper explained on the video conference that the current slowdown was due to people reluctance to see the potential of the technology. Draper explains that technology will rebound and transform many large industries all over the globe once people are more familiar with it. He stated:
“I believe it will have such a transformative impact on industries that we never imagined would be possible. The internet went after $10-100 Billion dollar industries, but cryptocurrency will target trillion-dollar markets. These include finance, healthcare, insurance, banking and investment banking as well as governments.
Draper is well-known for his investments in companies such as Baidu Inc., Tesla Inc. and Skype. He mentioned last year that he believes there is potential for blockchain and bitcoin ventures in Indonesia because of the lack of modern banking infrastructure. Although he hasn’t yet been known to invest into an Indonesian blockchain company, he supports UangTeman through his VC company Draper Associates.
The Southeast Asian portfolio of the successful investor, include companies like Singapore-headquartered fashion marketplace Zilingo, which last raised a $54-million Series C round in April. Draper also invests in Southeast Asia startups via Wavemaker, an early-stage venture capital company. Wavemaker focuses on investing in B2B companies and deeptech businesses. The portfolio of the capital firm includes CashShield enterprise fraud management solution provider, Structo 3D printing startup, and SilentEight artificial intelligence, AML solutions provider.
Crypto enthusiasts’ optimism is not yet rubbing off on the market. This has caused the market to be divided into two camps: pessimists and optimists.
Investors are inclined to invest
Goldman Sachs and Sachs were the first to enter the crypto space. However, investors have a strong inclination. Many financial institutions are pushed to adopt emerging trends. So sooner or later, other institutions will have ventured into the crypto space.
Although Milne made it sound sarcastic, he was actually making a point. The rapid rise in demand from institutions for cryptocurrency assets is evident by the sudden shift of banks towards them. This could be due to the current bear market. However, the low price range for most cryptocurrencies is not entirely bad.