Many people have expressed excitement and a lot of positive energy towards the interesting surge that some cryptocurrencies (especially Bitcoin) have experienced in the last week or two. The rise in market value has been noted not just for the possibility of hodlers to record outstanding profit but also for the increased likelihood of adoption, especially among non-crypto people.
One of such enthusiasts is Erik Voorhees, the CEO of ShapeShift cryptocurrency exchange. During a recent talk on a Bloomberg segment called “Bloomberg Markets: What’d You Miss?”, Voorhees shared his opinion on what he thought was a driving factor for the recent rally.
“I think we’ve seen four or five of these bubbles at this point and so a lot of it is just cyclical. People wait till they feel like the bottom is in, when they feel like the bear market is over and then they feel comfortable moving back into crypto. That’s probably the biggest reason this is happening but often these things are just a confluence of many individuals making their own decisions.”
Right after that, Vorhees’ opinion was also sought as to how much effect the creation of many coins and all the ICOs that have happened in the last two years may have had on the current rally. Vorhees pretty much refuted the possibility that any surge happened because of all the new stuff that happened in 2017 and 2018. He said:
“I might be more inclined to think that, if we hadn’t seen these bubbles before. So Bitcoin on its own went through multiple bubbles and in crypto, you have to understand that even though there’s thousands of these assets and it’s a very long tail, only the first ten or twenty have any importance at all. And then there’s a lot that don’t really matter much and they don’t really move the market.”
Erik Voorhees also opined quite optimistically that crypto is already taking over the world and the market value, cap and all the speculation that will come with it will definitely create bubbles. He said:
“There have to be bubbles in crypto because crypto is taking over the world and it’s not going to just advance 5% a month without end. If it did that, people would start buying it up and front-running it and turning into a bubble. So there’s no way to go from a zero dollar asset into one that is worth trillions without massive speculation and massive volatility in cyclical bubbles.”
On speculations and predictions, Galaxy Digital’s Mike Novogratz has predicted a $20,000 value for Bitcoin sometime in the next eighteen months. Most predictions for Bitcoin have been quite bullish and even though Mike’s forecast currently does look possible, no one can tell for sure until it's time.