Joey Krug is the co-chief investment officer of the crypto-hedge fund Pantera Capital. With Bloomberg, Krug talked about Bitcoin, the next bull market and a tenfold increase in market capitalization.
Bitcoin is relatively stable at the moment, trading $ 6,500 at press time. In the interview, however, Krug saw the Bitcoin course close to his bottom. From there, he said, Krug, the next bull market will open. The capitalization of the crypto market could rise to over one trillion USD. He said:
“If you look at the next bull market, I think the whole crypto area could increase tenfold from here.”
Krug was also asked for his explanation for a peculiarity. For example, the market entry of the US financial services provider Fidelity Investment and the Intercontinental Exchange (ICE) seems to have brought no movement in the market. Krug responded that the market is waiting for a concrete assumption before the bull market starts.He also said that the cryptocurrencies are currently suffering from two problems. For one thing, it would be too expensive to convert fiat money into cryptocurrencies. However, this problem will be resolved in the next six to nine months, Krug said. The second problem is scalability. According to the current state of the market is similar to “the Internet market before the introduction of dial-up connections.” Krug went on to explain:
“When you look at the Internet, it's easy to say,” You just program an app, collect a few people, and then solve the scaling problem. “But those are all markets, and if you're not scalable, you do not have market makers and then you have no liquidity. “
The Lightning Network is a solution to the scaling problem. Basically, this is a protocol that runs as a second layer over the Bitcoin Blockchain. Thus, the transactions do not require validation by Miner and can therefore be processed immediately. In addition, users can move funds outside the blockchain into payment channels on the Lightning Network.There are a few other solutions as well. These are not yet ready for a real introduction. In this context, Krug believed that some crypto networks would also solve the scaling problem over the next few years. According to Krug, they could achieve scalability at the level of Visa or Mastercard.
Even if the scaling solution is still to come, that does not mean that the bear market must continue to prevail. According to Krugs, the market will initially remain in the current area. The market is only waiting for the next trigger, the Bitcoin and the Altcoins rise again to new heights.
Sources: Bloomberg, Lightning Network, Pixabay
Author: Peter Joost – Source Post: https://www.kryptovergleich.org/pantera-capital-sight-the-next-bitcoin-bullenmarkt-bei-1-billion-usd/
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