ShapeShift CEO Points Out How Bitcoin’s Growth is Dependent on the Existence of Bubbles, Speculations
CEO of cryptocurrency exchange, ShapeShift, Erik Voorhees trusts that Bitcoin’s [BTC] growth relies heavily on bubbles reports Coin Telegraph. On Wednesday, May 15, Voorhees expressed his sentiments in an interview with Bloomberg TV and has since made several cases by expounding on bubbles that have burst in the past and how volatility is essential.
In particular, he made it clear that there’s no way for BTC to experience steady growth and here’s his reason(s) as to why this is so:
“There have to be bubbles in crypto because crypto is taking over the world, and it’s not just going to advance 5% per month without end. If it did that, people would start buying it up and frontrunning it and turning it into a bubble.”
Said comment comes amidst Bitcoin’s current price hike, as several leaders within the space have deemed that the bear market has come to an end, with the bull currently in place. As for this phenomenon, Voorhees trusts that factors such as volatility and speculation for instance are some of the main contributors. More specifically, he said:
“There’s no way to go from a zero-dollar asset into one that is worth trillions without massive speculation and massive volatility and cyclical bubbles.”
In addition, he noted that speculation will continue as long as, “people don’t use it [BTC] for actual purposes.”
Speaking of cyclical bubbles, news outlet, AMB Crypto has also reported on this matter, and quoted Voorhees explaining the general existence of said bubbles. That is,
“Four or five of these bubbles are always present in the market and they are clearly cyclic.”
He further noted that most traders would prefer to wait for the end of a bear market prior to investing. However, he has not really expounded on whether that is ideal or not. But he did note that regardless of the number of bubbles there exists, if real use cases are evident, then such volatility can be overcome.