Crypto Markets: Who Will Win in the Bulls and Bears Tug of War?

While millionaire investor Kevin O’Leary believes that the price of the world’s largest digital currency by market capitalization Bitcoin could quadruple once the Securities and Exchange Commission (SEC) frames regulations around the cryptocurrency sector, one of the world’s most famous short sellers Andrew Left considers digital assets as a solution to finding problems and that the idea of ​​decentralization is the dumbest thing ever.

Pains has only just begun

O’Leary said that bottoms are often created when there is a catastrophic event such as a major player going bankrupt or someone in deep trouble for buying cryptocurrencies on leverage, and when such an event occurs. out, the market will bottom out.

“Until then, there is no bottom. Events like the collapse of companies like Voyager don’t matter. When a major catastrophic event happens, it gets really ugly,” he said.

Excessive leverage remains unshaken

Venture capitalists and entrepreneurs say the overcapacity in the crypto market has not yet subsided, and as a result, investors can expect to be paid more.

“Because there are no regulations, we don’t know who will blow up when. However, one positive point is that when damage occurs, the damage will be diverse when there are many countries involved and many entities in the picture. But the downsides outweigh the positives,” he said.

Institutional investors will bring stability

The investor said regulating the sector will attract institutional investors to asset classes such as NFTs, stablecoins and cryptocurrencies, and that will provide stability.

“The best thing is to start with regulating stablecoins. That will be a great incentive for investors. Cryptos will not recover until specific policies are in place as they are, no ownership with asset managers or sovereign wealth managers. Therefore, there is not enough participation for it to become a real asset class,” he said.

O’Leary said there will be more bankruptcies and loss of investors’ money before the Securities and Exchange Commission notices and issues regulations.

Celebrating the purge of bad businesses

When asked to comment on the hardships crypto companies have suffered in regards to final numbers, liquidations and bankruptcy, he said that purging bad businesses is a healthy sign. because the industry is still in its infancy.

“What is happening with these companies is not surprising. Weak business models, management, and managers who didn’t understand the asset class in the first place are being purged and the market is getting rid of stupid management. Only when the fools are eliminated can an industry grow stronger. We should celebrate this purge,” he said.

Criticize Crypto Critics

When criticizing staunch crypto critics like billionaires Warren Buffett and Charlie Munger, O’Leary said a new asset class is always looked down on and everyone is prone to making the wrong decision on one. some point in life.

“They’ve been hugely successful, doesn’t mean they’re right about crypto. The productivity, transparency, and efficiency of blockchain are huge in the long run. The other way to look at this is this – There will be unprecedented institutional capital in crypto. The current bear market is just a blip. Abnormal results take time, he said.

Citing a similar example of e-commerce giant Amazon, O’Leary said that since its listing, the company’s stock has fallen by 38-50% but good management ensures that those That decline is only temporary.

Crypto Regulations Will Quadruple Bitcoin

When asked about the adoption of Bitcoin, he said it will trade higher than current levels, however, he is more worried about having regulations so that the cryptocurrency can be purchased as a security. regulation, like the BTC ETF.

“Once the regulations are in place, the price of Bitcoin will quadruple,” he said.

Citron Research founder and one of the world’s most famous short sellers Andrew Left said he wouldn’t be surprised to see the world’s largest and second largest cryptocurrencies by Bitcoin market capitalization. (BTC) and Ethereum (ETH) at $10,000 and $200 respectively.

BTC a collective consciousness of people

Left said neither BTC nor ETH have any real-world utility and are not accepted by anyone as a means of payment.

“BTC and ETH are different. BTC is a perceived value that can last as long as people want to buy it, but I wouldn’t be surprised to see it drop to $10,000. It looks like it has a future. such has been part of our collective consciousness.Eth, on the other hand, is said to have utility and it doesn’t.

He added that the only people involved in buying Bitcoin are from the same community because they see it as an asset, but it has no utility, whereas there are companies with real utility.

When asked to explain what real utility means to him, Left said there are companies that operate in the real world and make a profit.

Web3 a big illusion

Venture capitalists describe Web3 as a grand illusion and only aimed at depriving big tech companies of power.

“I don’t see any value in crypto, especially altcoins. They don’t have any utility. And Web3 is a grand illusion meant to rob big tech companies of power… In a world where the Internet needs more governance, the dumbest thing ever is that nobody controls anything. nothing (referring to decentralization) while billions of dollars are being thrown at it,” Left said.

Digital assets are the solution to the problem

“On the other hand, assets like the NFT are just collectibles, problem-seeking solutions,” he said.

He added that people are expecting that Ethereum will have real utility when it gets upgraded. “But once they realize there’s nothing to it, they’re like – Oh my God!”

Left adds that the use of blockchain technology is lower than the “hype” generated around it and has a number of problems associated with it.

“I know companies like Oracle and IBM that are using blockchain technology. However, there are some problems with it and it is being tested,” he said.

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