Bart Smith, Head of Digital Assets at Susquehanna International Group, spoke about whether there was a fundamental case for Bitcoin currently, taking into consideration that the store of value seems to be a hard case, in an interview with CNBC Fast Money.
Smith stated that Satoshi Nakamoto, the creator of Bitcoin, designed an algorithm for the very last Bitcoin to be mined in 2140, and that this was intended to be a long game. He further spoke about the previous price of Bitcoin during this timeframe. Smith stated:
“A year ago guess Bitcoin was at $8000. But the Thanksgiving before that, it was at $750 and the Thanksgiving before that, it was at $350 and in 2010 someone bought two pizzas for 10,000 Bitcoins, that today would be worth over $40 million.”
He went on to say that the price action from December 2017 up until now has been “pretty painful”. Nonetheless, he added that every great idea is volatile. For this, Smith quoted the example of Amazon, which went down by 95% and was declared dead by people. Smith further stated that irrespective of the price action, the idea of Bitcoin, to have a peer-to-peer non-sovereign, non-centralized store of value is something that has been desired by people for a long time.
“The price action from now until the end of the year where Tom Lee may or may not be wrong into next year is not going to define if Bitcoin is successful. The use of it has to explain”
Furthermore, he was asked about whether Tom Lee’s prediction about Bitcoin hitting $15,000 by year-end hurts the space. To which, Smith stated that he does not analyze price movements and that in his perspective, Bitcoin would fall somewhere between $19500 and $750, which would not turn out to be a good market. He further added that everyone in the world currently thinks of the cryptocurrency as an asset class even though it was originally not created to be one.
“For this [Bitcoin] to be successful user ship has to increase. It may or may not mean the price goes up. In United States it is difficult, like you know demo and American Express, is perfectly well for me. And so that was not necessarily what it was designed for but the desire to having our non-sovereign you know form of currency has existed forever and remember it came out of the depths of the crisis. Like, let’s see what happens next year.”
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