BITCOIN price has dropped over simultaneous unreliability issues over the future of cryptocurrency, even so, the price will rise again according to hedge fund manager Dan Morehead with a flinty warning.
According to CEO of Pantera Capital, Dan Morehead, bitcoin price has the possibility to rise but there isn’t any fixed support like other markets such as copper in cryptocurrency, hence cryptocurrency companies risk running losses for months.
Morehead said to CNBC,
“I think it is very difficult to ever do real world calculations of the cost of mining. All these are sunk costs and people have built these enormous data centres with computer chips that are doing the mining. I think it is unlikely to have any fixed support there. The company might run a loss for six months hoping that the price is coming back. I think there really isn’t a level like in copper, where if you get below the marginal cost people just stop their mines. Here I think there isn’t some kind of fixed floor like that.”
He further stated,
“Bitcoin was half this price a year ago and it was all working great. The price could go down but I really do think a year from now it will be much higher than it is today.”
Bitcoin’s price crash is the outcome of continuous flaws over the Securities and Exchange Commission’s (SEC) decision whether a proposed bitcoin exchange-traded fund (ETF) should be approved.
Banks and finance experts have given Bitcoin and other cryptocurrencies criticisms, with billionaire Bill Gates telling CNBC he would bet against the bitcoin and short it if he could.
The Microsoft co-founder stated, “as an asset class, you’re not producing anything and so you shouldn’t expect it to go up. It’s kind of a pure ‘greater fool theory’ type of investment.”
On the negative side, former PayPal CEO Bill Harris believes that Bitcoin is the “greatest scam in history.”
Ultimately, sentiments are still divided on the recovery of Bitcoin and its true real-world applications. Only time will tell.