Vinny Lingham, the CEO, and founder of Civic, an identity protection, and management startup discussed the current condition of the cryptocurrency markets, the crash of Bitcoin and the possible reasons for the crash.
In the interview with CNBC, Vinny Lingham explained that the crash was not over yet and that Bitcoin hasn’t really hit the bottom. According to him, the market is in a “despair state” because Bitcoin has dipped below the $5,800 support which most people considered as the bottom for Bitcoin’s downward spiral.
He went on to say that the bottom for Bitcoin might be just around the corner but one can’t really be sure about it, and it could either way. Lingham said:
“My best guess would be somewhere between $2,000 to $3,000, but it could go lower it might be higher but you know, it’s not $500 obviously but I think the current $4,000 level is getting closer.”
Lingham added that he wasn’t just guessing the bottom and that it was based on market fundamentals and basic economics. He also mentioned that there were too many companies in the crypto-space that were not generating enough revenue since the sellers in the current markets have overpowered the buyers. For these companies to generate revenue, fiat money is required which comes from the buyers in the market.
Vinny Lingham added to the above point and established his support for the crypto-verse, saying:
“I’m a big believer in crypto for a long-term and I think we’re gonna have market caps in the trillions but right now we’re gonna have to take some pain because we got over-exuberant.”
To explain the reason for the sudden and brutal collapse in the market, Lingham directed towards the recent forking of Bitcoin Cash. He said that there were a number aspects that resulted in the crash of Bitcoin’s price and that the “hash wars” was one among them. He also said that institutional facilities like Bakkt or Fidelity wouldn’t get into the market, as there is too much risk involved.
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