Unlike the projections of prominent crypto bull Mike Novogratz, Chinese analysts do not see record highs for bitcoin. The majority of Chinese analysts predict that the bear market is here to stay, at least for 2019.
State-run news outlet Beijing wrote the following about Bitcoin:
„Throughout the whole last year, Bitcoin was nothing more than an investment black hole. As we enter 2019 the prices are still incredibly volatile and show signs of decline. The worrying thing is, there are absolutely no signs of rebound.”
Without a doubt, Bitcoin is entering 2019 with a huge dose of pessimism and that’s normal. Xiao Lei is a currency policy analyst and he attributed the harsh market conditions to the insane price spikes of 2017. According to Lei, such a tremendous growth was by no means sustainable and the results are completely predictable.
Another Chinese crypto analyst, nicknamed Huang Liang states that the whole crypto market is a “zero-sum game”.
He believes that the crypto market has always been a transaction-driven zero-sum game. All the money people earn, are only coming from real money in someone else’s pocket. Additionally, there must a constant influx of new traders to buy cryptocurrencies at a higher price.
Chinese Analysts are understandably anti-crypto
Liang also shared his own reasons for the current market predicament:
“I believe that the bull run of 2017 was entirely due to the massive influx of new traders. They flooded the market because they were hypnotized by the amazing aspects of blockchain technology, smart contracts and ICOs. This resulted into them driving the prices of all assets, especially Bitcoin to unsustainable levels.”
Liang also stated that a lot of the new traders are falling victims of scam artists, especially with ICOs. These victims are fueling the current market collapse.
It’s not a surprising thing to see anti-crypto views in China. The country’s government has been incredibly vocal about cryptocurrencies. There have been crackdowns on crypto exchanges and miners and that doesn’t seem to be stopping. Even so, driving crypto out of the country seems impossible since despite all the bans and regulations, miners are still operating within China’s borders.
Contrary to the Chinese analyst predictions however, many American crypto investors like Jeremy Allaire, the CEO of Circle, believe that Bitcoin will see even better days than 2017. Allaire has stated many times that Bitcoin has a unique role to play being a scarce, non-sovereign store of value.
He believes that in time, most cryptocurrencies will die off due to harsh competition. Allaire is definitely not a supporter of the idea that the market is a zero-sum game. He believes that the success of one digital currency isn’t necessarily the death of all others.
“I don’t believe this is a winner-take all kind of scenario. We believe in a phrase: The tokenization of everything. It’s our belief that cryptographic tokens are eventually going to represent every form of financial asset in the world and there will be millions of them.”
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