We’re Finding A Bottom For Large, Lasting, and Liquid Crypto Assets (Like Bitcoin)
Fred Wilson, a leading venture capitalist and the co-founder of world-renowned Union Square Ventures, which holds shares in Twitter, Tumblr, and Kickstarter, recently took to his well-recognized blog to talk market outlooks for 2019. After discussing macroeconomics, touching on the recent news with the U.S. Federal Reserve, the China/America trade dispute, and the stock market tumult, the crypto-friendly investor took some time to talk Bitcoin (BTC) and other blockchain-based assets.
Echoing comments from Joseph Lubin, a co-founder of Ethereum and the founder of blockchain development group ConsenSys, Wilson noted that we’re nearing a bottom for this nascent asset class. In the blog post, titled “What Is Going To Happen In 2019,” he wrote that for many large, liquid, and lasting crypto-tokens (like Bitcoin, Ethereum, and other household names), a bottom is festering.
Although this nascent market is on its way to a bottom, Wilson noted that this process could occupy much of 2019, especially due to the volatility that this asset class is subject to. The member of Union Square’s top brass added that he doesn’t expect for the current lull, which has seen Bitcoin range trade in a small zone, to continue. In fact, the prominent financier noted that a number of “bullish runs, followed by selling pressures” will bless cryptocurrencies with their presence. The selling pressures, he explained, could bring BTC to retest its year-to-date low at $3,150.
Wilson didn’t reveal if he expects for cryptocurrencies to establish new lows. Yet, a number of pundits, including Anthony Pompliano of Morgan Creek, have claimed that Bitcoin could find itself below $3,000 before a true bottom is discovered. During some point in 2019, however, the venture capitalist noted that this industry will slowly foray into a “new bullish phase.”
Fulfilled Promises From 2017 Will Push Crypto Higher In 2019
Speaking on what will catapult cryptocurrencies into the aforementioned bullish phase, the investor drew attention to the countless ambitious promises made in 2017, adding that those that are fulfilled in the upcoming months will push this industry to new heights. As many consumers are aware of, 2017 was rife with projects promising global domination (essentially), but subsequently failed to accomplish even a fraction of their initial goal over 2018.
Touching on specific examples which he has connections with, Wilson exclaimed that he hopes that big name projects, like $200M+ ICO Filecoin and Algorand, will begin to ship. He added that he expects for “next-gen” smart contract platforms, such as Cosmos, to eventually challenge the hegemony that Ethereum has established over this subsector. Wilson noted that this competition will push Ethereum to ship improvement protocols, like Constantinople in the weeks to come, along with potential early iterations of Serenity.
Along with a rise in prominence for so-called “blockchain 3.0” platforms and innovative projects established in 2017, Wilson explained that consumers will begin to adopt stablecoins, NFT/crypto assets for crypto gaming, and earn/spending opportunities.
Yet, he explained that this industry isn’t fully in the clear, as he explained that there may be misguided regulators that will take action as bonafide projects, which will harm this industry in turn. Moreover, Wilson remarked that he expects for hacks, scams, and failed projects to continue to plague this industry, which will drag cryptocurrencies lower. But overall, he noted that this is the case with any emerging technology, maintaining that he’s long-term bullish on cryptocurrencies.