The founder of crypto investment fund Digital Currency Group, Bary Silbert, has stated that despite the lifeless state of the cryptocurrency ICO market, nothing would stop the development of the digital currency market.
Silbert further indicated that the buzz on public token sales in 2017 was a prominent reason for the shoot in prices of bitcoin but since the buzz on Initial Coin offerings has died down, the result has been a considerable removal of investments from the cryptocurrency market resulting in a decline from $813 billion to its current $137 billion. Silbert stated that;
“The ICO market is dead — over. You now have the lack of demand from ICOs. And you have all the sponsors of the ICOs who raised a bunch of bitcoin [and ether] that are now starting to sell that.”
The Connection Between the Crypto Market and Tech Sector
Silbert then explained the relationship between the fall in the cryptocurrency market and the fall in the tech sector. He said that the market drop was not astonishing due to the state of the tech sector now. He said that the two industries move hand in hand because investments made in tech stocks overlap that of crypto too. In that respect, he mirrored Fundstrat’s Tom Lee’s views on the fall in tech stock mirroring that of the crypto market. Tom Lee has, however, in spite of the recent fall in the cryptocurrency market, sustained that bitcoin price could hit the $15,000 mark before the end of the year.
Silbert revealed that he has no fear concerning the recent fall in the market saying that the dip is perfectly normal for every market. He compared the crypto market to statement of financial position reports of organizations saying there are sure to be good and bad years. Silbert also reiterated that there have been a series of positive happenings in the crypto world not being reflected on its market capitalization. He said that institutional investors are getting involved in the crypto world, a development that could revolutionize the cryptocurrency industry.
One of such happenings include an announcement made by Ivy League colleges in the U.S. stating that their multi-billion-dollar university endowments had started investments in crypto, thereby heralding trust in crypto as a reliable source of investment. It has been reported that the allocations to crypto is not large but can still in monetary terms have a good impact on crypto.
Silbert also spoke on the cost of mining bitcoin, saying that mining involved gains in the long term with less focus on the short term. It has been reported that crypto mining firm Coinmint made provisions to create the world’s largest bitcoin mining center in New York. A 1,300 acre of land has been purchased as to this effect. Operations are expected to be started on June 2019 at the bitcoin mining farm.