How the Bubble Hasn’t Changed Crypto or Bitcoin’s Intrinsic Value (And What Could Happen Next)


Cryptocurrency has been an evolving world, and the bubble seemed to impact the varying prices. A recent editorial piece was written by Hu Liang, the co-founder and CEO of Omniex, which is a platform for institutional trading of crypto assets. The editorial was published to CoinDesk’s 2018 Year in Review, where he contemplated if

the intrinsic value of crypto has materially changed for institutional investors.”

In the fast, Liang has believed that the value of crypto comes down to the way that it offers and develops decentralized networks that support the creation of businesses. He expressed this stance in 2017m and he said that he stands by the same concept now. However, now he believes that “a new asset class is not created in just one year.”

The entire industry was impacted by the price increase that crypto assets went through. He believed that this type of increase was “not sustainable,” though he doubted himself over the course of the year. He referred to a speech during the internet bubble in 1996. Former Federal Reserve Chair Alan Greenspan said,

“How do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions…”

Now, Liang believes it is clear that we know. Liang takes it a step further, alleging that the way that cryptocurrency has fallen lately hasn’t exactly been impressive or surprising.

If the dot-com era is any indication, many big names fell over 80% from their peak, but Liang’s point is more about the aftermath than the crash itself. Real utility is necessary for any company to survive, which is why Liang said,

“Now is when we really need to focus on delivering on the true intrinsic value of crypto and blockchain, turning away from undue speculation and creating real use cases and value networks. As Michael Casey so clearly put it, we caused the current crypto-winter and we are the ones who should fix it.”

Since the intrinsic value hasn’t changed, it’s hard to say what the “fix” is, but Liang says there are two areas that he feels optimistic about, regarding advancement. The first is how institutional investors are being encouraged to be a part of the “crypto and blockchain revolution”. With cryptocurrency presently being the only asset class that institutions didn’t create, the infrastructure is much different, though it is evolving.

The second area of importance, which Liang dubs more significant, is “a broader adoption of decentralized networks at the protocol level.” His company’s goal is to continue with the creation of an ecosystem that is user-friendly to institutional investors that want to get involved with cryptocurrency, promoting it as “a new asset class” in 2019.

By expanding on this foundation, Liang believes widespread adoption will continue through the whole of 2019.

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