Bitcoin’s [BTC] unprecedented rise in 2019 caused the entire cryptoverse to erupt in joy, with many claiming that the bear market was finally over. Many popular proponents in the space have also come forward to state that the world’s largest cryptocurrency’s fortunes are beneficial to the entire industry as a whole.
In a recent interview with Bloomberg, Eric Voorhees, Chief Executive Officer of Shapeshift, spoke about the bull run as well as the bubbles Bitcoin has gone through. He stated that Bitcoin’s movements are all cyclic and claimed that these troughs and crests will be prevalent in a speculative asset. In his words,
“Four or five of these bubbles are always present in the market and they are clearly cyclic. Many people in the space wait till the bear market is done or at least for it to show signs before starting to invest. Bitcoin itself went through multiple bubbles in the past but that’s okay as long as the use cases are clear.”
Voorhees further added that only the first ten or twenty cryptocurrencies on the charts actually mattered since the rest of the coins didn’t move the market. The CEO was asked whether the bubbles exhibited a pattern, to which he replied that the signs pointed towards BTC taking over the world. According to him,
“There is no way an asset can go from zero dollars to a billion dollar asset without price bubbles. That’s just the fact. The speculative nature will continue as long as people don’t use it for actual purposes.”
Eric Voorhees was also in the news recently after he stated that BTC cannot rise steadily over the years as adoption advances. He had tweeted,
“An asset like Bitcoin cannot rise steadily over the 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.”
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