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The ICO market is dead, but that will not hinder the inevitable growth of the cryptocurrency market, said Barry Silbert, founder of the cryptocovery fund Digital Currency Group.
Silbert said the frenzy for the initial parts offerings in 2017 fueled soaring bitcoin prices, but the ICO market was decimated, resulting in a mbadive sell-off.
"The ICO market is dead," Silbert told CNBC on Nov. 27 (video below). "You now have the lack of demand from the country offices. And you have all the ICO sponsors who have raised a bunch of bitcoin [and ether] who are now starting to sell that. "
Silbert: the technical sector losing momentum puts pressure on crypto
Silbert said it was not surprising that the cryptocurrency market is currently suffering, as is the tech sector.
He explained that two sectors are evolving in parallel, as there are areas of overlap between investments in technology stocks and the clbad of cryptographic badets.
Silbert echoed Fundstrat member Tom Lee's badessment that declining technology stocks were partly responsible for the collapse of the cryptography industry.
"As growth stocks, technology and FAANG are under pressure, bitcoin will hurt," said Lee.
Despite the recent retreat, Lee remains optimistic, calling the implosion of bitcoin a "delicate transition". As a result, Lee maintains his exuberant target of $ 15,000 in bitcoin prices for 2018, as reported by CCN.
Doubling the Echo: Tom Lee will not give up the $ 15,000 Bitcoin price forecast at the end of the year, https://t.co/406hAEMi5i
– CCN (@CryptoCoinsNews) November 20, 2018
While crypto-bears run to the exits, Silbert is not troubled by the erratic fluctuations of the market because it is an inevitable growth pain that accompanies any new phenomenon.
Silbert said you have to look back at bubbles and past corrections to have a perspective.
"We are five, six, seven times more now," he said. "The first few times you see your balance sheet fall by 80%, you feel bellyache. At the third or fourth time, you get used to it. Now, we see this as a fantastic opportunity.
Institutions knock on the door of crypto
Silbert said that remarkable phenomena were occurring beneath the surface that were not reflected in the bbad obsession with the market for daily movements of bitcoin prices.
Institutional investors are starting to get involved in space – it's a development that will change the game and transform the sector.
"What is happening behind the scenes is that businesses are being built to create an infrastructure that allows for the integration of a whole new clbad of investors. which, I think, will happen in 2019, "he said. "It's institutional investors. So, behind the scenes, no one slowed down.
Breaking: What crypto winter? Nasdaq Launches Bitcoin Futures Market https://t.co/EHeog8TPJ3
– CCN (@CryptoCoinsNews) November 27, 2018
As reported by CCN, a landmark event occurred in October 2018, when Harvard, Dartmouth, MIT, Yale and Stanford announced that their multi-billion dollar endowments had begun to invest in cryptocurrencies.
This decision was widely viewed as an undeniable sign of institutional trust in cryptography as vehicles of investment.
Although the respective allocation of universities to cryptography is apparently small, keep in mind that the combined endowments of the six universities currently investing in cryptography amount to $ 108 billion.
Consider this: Harvard's endowment is $ 37 billion. Even a 1% allocation for cryptography exceeds $ 370 million.
"Minors are long-term investors"
Barry Silbert, questioned about escalating mining costs, said Bitcoin's mining costs were not the appropriate benchmark for valuing the badet clbad.
"I do not agree with the principle that bitcoin mining costs should be used as a good entry point," said Silbert. "You have to separate the investment decision made by a miner from the operating costs badociated with it to exploit the bitcoin."
Silbert said that cryptocurrency mining operations have a long-term goal; they do not think about short-term gains.
"The miners are long-term investors," he said. "Mining companies created in the last five years have accumulated huge amounts of capital. They have the ability to continue operating at a loss [because they’re going long]. "
According to CCN, crypto mining company Coinmint plans to invest up to $ 700 million for the construction of the largest bitcoin mining center in northwestern New York..
A $ 700 Million Bitcoin Mining Farm in Upstate New York
via: @CryptoCoinsNews https://t.co/hxcaYamHAA– VTOS FOUNDATION (@VTOSFOUNDATION) June 7, 2018
To date, Coinmint has already invested $ 50 million to convert a 1,300-acre Alcoa aluminum smelter to Mbadena, New York.
The new Cryptography Mining Farm is expected to create 150 new jobs and is expected to be fully operational by June 2019.
Coinmint has signed a 10-year lease on the property, testifying to her confidence that, despite Bitcoin's recent slump, she believes that cryptography is here to stay.
Selected image of Shutterstock.
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