Executive At Pantera Capital Says Cryptocurrencies Can Grow Ten Times by 2020
According to Joey Krug, co-CIO at Pantera Capital said that cryptocurrency markets could increase ten times by 2020. He said that to Bloomberg on October 16. During the interview, he said that scalability issues played an important role that marked Bitcoin prices during 2018.
In 2017, Bitcoin and other virtual currencies experienced a massive bull run. The most popular virtual currency reached $20,000 dollars and in a few weeks it dropped down to $6,400 dollars Since that moment, the market cannot recover and Bitcoin price has been operating between $6,000 and $7,000 dollars.
At the moment there are several companies that are trying to invest in virtual currencies. Additional, important firms are developing institutional-grade platforms for wealthy investors to enter the crypto market.
In addition to it, Joey Krug said that he is not sure if there will be blockchain networks as fast as Visa or MasterCard within the next years. However, if this happens crypto prices could skyrocket in the near future.
On the matter, he commented:
“I don’t know if that will ever happen for Bitcoin, but I do think we’ll see blockchains as fast as VISA or MasterCard within the next couple of years.”
Then, he said with improvements in scalability and processing capacity, prices could grow 10 times in two years’ time.
There are several developers working in a solution for Bitcoin’s scalability issues. The network that programmers are building is known as Lightning Network and could certainly improve Bitcoin’s ability to process payments.
This Lightning Network would allow Bitcoin’s network to support millions of transactions and for less than even a cent of a dollar. After several transactions are processed, they are broadcasted to the network.
In Ethereum something similar is happening. When the popular virtual currency reached an all-time high at the beginning of the current year, the network couldn’t handle all the transactions. Developers are also working in order to create a new off-chain scaling solution to improve the overall performance of the network.
Currently, Bitcoin is being traded around $6,530 dollars and has a market capitalization of $113 billion dollars.