Crypto market: who will win the tug-of-war between bulls and bears?

While millionaire investor Kevin O’Leary believes the world’s largest digital currency by market capitalization is worth Bitcoin Once the Securities and Exchange Commission (SEC) quadrupled the regulations surrounding the crypto sector, Andrew Left, one of the world’s best-known short-sellers, touted digital assets as a solution to the problems it seeks and the idea of ​​decentralization. Was the stupidest ever.

the pain has just started

O’Leary says that a bottom is usually created when a big player goes bankrupt or someone is in deep trouble buying crypto at excessive leverage and when such an event occurs, the market bottoms out. Will be done.

“Until then, there’s no bottom. Events like the collapse of companies like Voyager shouldn’t matter. When there’s a big catastrophic event, it’s going to be really terrifying.”

More leverage still hasn’t shaken

The venture capital investor and entrepreneur says that the overleverage in the crypto markets is still not closed and hence investors can expect further payouts.

“Since there are no rules, we do not know who will blow up when. However, one positive thing is that when damage occurs, the damage is varied in terms of multiple countries being involved and multiple entities in the picture. But The negatives outweigh the positives,” he said.

Institutional investors will bring stability

The investor added that deregulation of the sector would bring institutional investors into asset classes such as NFTs, stablecoins and cryptos and that would bring stability.

“The best thing is to start with regulating stablecoins. This will be a huge incentive for investors. Crypto will not recover unless there are concrete policies currently in place, with sovereign wealth managers or asset managers not having any There is no ownership. So, there is not enough participation in it to be a real asset class,” he said.

O’Leary said it will suffer more bankruptcies and loss of investors’ money before the Securities and Exchange Commission takes notice and initiates regulations.

Celebrate the Purification of Bad Businesses

When asked to comment on the agony being faced by cryptocurrency companies with regards to bottomline numbers, liquidations and bankruptcies, he said that purging bad businesses was a healthy sign as the industry is still nascent.

“What is happening to these companies is not surprising. Weak business models, management and managers who don’t understand the asset class in the first place, are being purged and the market is riddled with idiotic management. Idiots An industry can be strong only when it is outside the U.S. We should celebrate this purification,” he said.

Rebuke crypto critics

Slamming staunch crypto critics like billionaires Warren Buffett and Charlie Munger, O’Leary said that a new asset class is always looked down upon and that everyone makes the wrong decisions at some point in life.

“They have had great success, that doesn’t mean they are right on cryptocurrencies. The productivity, transparency and efficiency of blockchain in the long run is immense. Another way to look at it – cryptocurrencies will have unprecedented institutional capital. The current bear market There is just one blip. Exceptional results take time,” he said.

Citing the analogy of e-commerce giant Amazon, O’Leary said that since listing, the company’s shares have seen a 38-50% depreciation, but good management ensures that such Downsides are temporary.

Crypto regulations will quadruple bitcoin

When asked about bitcoin, he said that it would trade higher than it is today, however, he was more concerned about enforcing regulations to allow crypto to be bought as a regulated security like BTC ETFs.

“The price of bitcoin will quadruple once the rules are in place,” he said.

Andrew Left, the founder of Citron Research and one of the world’s best-known short-sellers, says he is ranked as the world’s largest and second largest digital currency by market capitalization Bitcoin (BTC) and Ethereum (ETH) at $10,000 and $200, respectively. Wouldn’t be surprised to see the currencies.

BTC Collective Consciousness of the People

Left says that neither BTC nor ETH has any real-world utility and is not accepted by anyone as a means of payment.

“BTC and ETH are different. BTC is a perceived value that can last as long as people want to buy it, but I wouldn’t be surprised to see it drop to the $10,000 level. Looks like its The future as it is is already part of our collective consciousness. ETH on the other hand is supposed to have utility and has none. I expect the price to go back to $200.”

He added that the only people involved in buying bitcoin are those who see it as an asset but have no utility, while on the other hand, there are companies that have real utility.

To explain what real utility means to them, Left said there are companies that operate in the real world and make profits.

Web3 a big confusion

The venture capitalist investor called Web3 a big fallacy and was intended only to take power away from big technology companies.

“I don’t see any value in cryptocurrencies, especially altcoins. They have no utility. And Web3 is a big fallacy aimed at taking power away from big tech companies… in a world where the internet needs more governance “It’s the dumbest thing ever that nobody controls anything (referring to decentralization) while billions of dollars are being thrown at it,” Left said.

In search of digital asset problems there are solutions

“Assets like NFTs, on the other hand, are just collectibles, solutions looking for problems,” he said.

He said that people are expecting that Ethereum will have real utility once the upgrade is done. “But once they realize there’s nothing in it, they’ll be like – oh my god!”

Left further stated that the use of blockchain technology is modest compared to the “hype” that has arisen around it and that there are many problems associated with it.

“I know companies like Oracle and IBM are using blockchain technology. However, it has many problems and is being used.”

first article