Cardano Founder Tells Investors to Hodl Their Horses As Crypto Markets Could Take A Decade To See 2017 Prices Again
Cardano Founder: Cryptocurrencies Could Take Up To Ten Years To Regain Their 2017 Prices
Bitcoin rose to almost $20,000 USD in 2017. At the time, crypto investors were absolutely and madly in love with the market, but 2018 has seen a huge fallout in price and the overall market lost about 87% of its value. It was a bubble crashing, no doubts about that.
Fortunately, there are signs that the market will be more stable now in 2019 but some people like Cardano’s founder, Charles Hoskinson, are not very optimistic about prices going up again so soon.
According to the founder of Cardano, the industry may take a decade to be able to reach 2017’s prices again. However, his comments, which were made at the Crypto Finance Conference on January 17, are not at all fully pessimistic. Hoskinson believes that when Bitcoin finally reaches the price of $20,000 USD or more once again, the ecosystem will be very different and more stable.
A Comparison With Amazon
You may have heard the comparison before because it is a pretty obvious one, but a lot of people believe that Bitcoin can be compared to the Amazon stocks and Hoskinson is one of these people. Why? Because it is very tempting to do it.
Amazon was one of the companies that peaked during the Dot-Com bubble, which is often compared to the cryptocurrency bubble of 2017. The stocks of Amazon have crashed after the bubble and they took 11 to 12 years in order to get back and make even for the investors that stayed with them for so long.
By 2012, Amazon was a much more mature company, Hoskinson affirms, and this is why their price has not fallen since then. The crypto industry, he defends, could follow a similar pattern.
Today, not a lot of people use cryptos, so they are still very niche, especially when compared to something as huge as Amazon. However, in ten years time, there is a good chance that the crypto industry will grow enough in order to actually be mainstream enough to sustain such a high price. By getting investors and more users, cryptos could easily become the next Amazon, he believes.
A space that is more regulated could also translate into investors having more confidence when they invest in cryptos. 2018 has seen major efforts from regulatory bodies and entities to create a legalized crypto market.
With more rules and regulations (something that old school Bitcoin evangelists shiver to think about), Bitcoin could finally lead the crypto market into the mainstream for once and for all, Hoskinson believes, so that massive volatility would no longer exist and then the markets would be more stable going up.
The institutional adoption of the tokens is also a very important step and we are seeing companies more interested in being a part of the crypto ecosystem now, which is a great idea.
While not many businesses are committed to using the blockchain technology so far, things are bound to get better over time and more investors and users mean that, whenever the next bull run happens, the market will more solid and prepared.