Bitcoin’s rise above the $5,000 threshold has been significantly publicized in both the crypto community and mainstream media, considering how long Bitcoin has remained still. Many proponents have popped up to speak on their support of cryptocurrency and decentralization, including CEO and founder Erik Voorhees of Shapeshift.
In a tweet, Voorhees explained that the rise of Bitcoin through the years would not survive mainstream adoption. Even with a rise of 5% a month over an indeterminate number of months, there will be individuals that “front run that growth,” which will ultimately cause a bubble that can burst.
An asset like Bitcoin cannot rise steadily over years as adoption advances. For upon seeing an asset rise by, say, 5% per month for XX months, rational actors will front run that growth, causing inevitable bubble and burst. There is no other way.
— Erik Voorhees (@ErikVoorhees) April 4, 2019
Vijay Boyapati, a Senior Software Engineer for Peach, commented on Voorhees’s statement, saying that this is “the one major hold in the Mengerian account of the origin of money.” Boyapati explains the purchasing power of any given good increases as the marketability improves, which lets people speculate and marketability further increases.
The whole thing is a big feedback loop which drives societies to quickly standardize on a single money.
— Vijay Boyapati (@real_vijay) April 4, 2019
The comments from cryptocurrency exchange owner Voorhees coincide with the analysis from many experts that believe that Bitcoin will be going down soon. The New York Times, for example, said that Bitcoin simply is not ready for mass adoption by the public. The article added Bitcoin’s projected failure as a way to bring in institutional investors to focus on dropping prices. However, the cryptocurrency community was not happy with this reaction.
Asiff Hirji, the COO and president for Coinbase, commented on the statements of the NYT, saying that the article was almost ironic, considering the rise above the $5,000 threshold. The entire article can realistically be summarized by the introduction alone, which starts by saying that the “enthusiasts” of the digital asset market were banking on Wall Street’s entry as a way to provide them with “legitimacy.” However, it added that the struggles that Bitcoin has faced show how hard it is for the asset to transition from “the fringes of the internet into the mainstream financial world.”