While 2018 hasn’t been the best year for cryptocurrencies including Bitcoin, however, the crypto is bullishly positive that 2019 will be a great one. Travis Scher, vice president at crypto investment firm Digital Currency Group also predicts on the similar lines.
Scher, an attorney who previously worked at the white-shoe law firm Skadden Arps published a post on Medium, titled “The Tide is Out: What the 2018 Crash Has Revealed and Why the Future of Crypto is Bright”. In the article, Scher shares his insights and his hopes/assertions for the cryptocurrency ecosystem.
He started off by admitting that 2018 was a challenging year for cryptocurrencies. Yet he remains optimistic about the ecosystem:
“2019 will be volatile, entertaining, and full of surprises. But I am confident that the stress caused by the 2018 crash will lead to more growth.”
Scher further addressed some key underlying issues that according to him are hindering the progress of the crypto space. In doing so he laid down some of his ‘thoughts, observations, and predictions’ for the year ahead.
Scher stated that it is critical for the industry to work with lawmakers to adopt appropriate regulation. This will in return promote the industry’s legitimacy and therefore, advance mainstream adoption.
“Regulation is the most important topic in crypto today. How regulators decide to treat cryptoassets and crypto companies will be a huge determinant of this industry’s success.”
Probably this is why, back in September 2018, Digital Currency Group, Coinbase, and Circle launched a pro-crypto lobbying group. Industry’s support towards the legislator implies that the industry is serious when it comes to protecting the consumers.
The industry needs to proactively and effectively make the case that this industry can be a powerful force for good.
Following a similar sentiment, Jeremy Allaire, the co-founder of Circle, a crypto unicorn with a $3 billion valuation stated in that Bitcoin will be a worth ‘great deal more’ in three years and to do that “We have been very active with Congress, with policymakers.”
Furthermore, Scher added that the industry will see many crypto startups, projects, and funds on the lines of bankruptcies in 2019, this would also include multiple layoffs.
“Crypto companies need to tighten their belts and prepare for a long winter. Token sales will be hard to execute not just because of uncertain regulation, but because liquidity has dried up.”
During the boom of 2017, crypto funds minced hundreds of millions. But as the bubble burst in 2018 they suffered horrific losses which will probably continue this year as well. In the industry’s defense, Scher added that it grew too fast amid the market hysteria, so a period of normalization is here and that’s not a bad thing.
Scher compared the growth of the crypto industry with ‘Darwinian evolution’. While some companies will shut imminently, the stronger one will just keep getting better. Scher observed:
“A little Darwinian evolution is just what the industry needs. The easy money in 2017 and early 2018 bred a lack of discipline and…straight-up arrogance. Companies with shaky foundations will get washed out in 2019. But those that are well-run and mission-driven will end up even stronger.”
One such example is blockchain startup ConsenSys, after doubling its workforce in 2018, the company abruptly laid off as much as 60% of its staff in December 2018. Joseph Lubin, the CEO of ConsenSys and the co-founder of Ethereum, said ConsenSys had to eliminate underperforming projects to cut costs after the group got too big and unwieldy.
https://twitter.com/InsiderEthereum/status/1076733590891839488
Scher asserts that the hype surrounding the expected influx of institutional investors has much truth at its base. Scher said:
“This is very real — companies like Goldman Sachs, Fidelity, and ICE are publicly making big moves in the space. Beyond high-finance, Square and Robinhood have made aggressive inroads into crypto, and now Facebook is rumored to be launching a stablecoin.
He further added that a sea of changed looms on the horizon for the crypto market, this the current Crypto Winter does not faze him.
“The change-averse corporate executives who have derided crypto will be embarrassed when their dismissive quotes resurface down the line.”
Read More: Top Indian Companies Are Planning To Use Cryptocurrencies For Internal Purposes
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