Bitcoin (BTC) Going to Zero According to Davos Panelist Jeff Schumacher
In 2019, the cryptocurrency scene may turn gloomier, according to BCG Digital Ventures founder.
Digital currencies lined up among Davos topics in 2019, but this time, the mood was even gloomier, reported CNBC. Jeff Schumacher, the founder of BCG Digital Ventures, believes Bitcoin (BTC) price is going to zero.
Schumacher, however, believes blockchain companies where he invests, hold greater promise. In this, he stands against Bitcoin maximalists who believe the asset may be a store of value and even an international reserve currency.
"I do believe it will go to zero. I think it's a great technology but I don't believe it's a currency. It's not based on anything," said Schumacher.
Glenn Hutchins, co-founder of Silver Lake Partners, believes Bitcoin will always remain a part of the digital asset ecosystem, as the chief settlement digital currency.
"It might be that the role of bitcoin in the system could be to bring value back, to hold your value there while you have tokens that have other use cases that you aren't using at the moment," Hutchins said.
The panelists on blockchain technology at Davos agreed that Bitcoin was not the entire story. The usefulness of the underlying protocols and the creation of decentralized systems that could facilitate cross-border payments could hold more value in the long run, the panelists pointed out.
Brad Garlinghouse, CEO of Ripple, believes blockchain technology will see more adoption in the coming years. Hutchins also believes blockchain and distributed protocols will survive, evolving to work in the background, just like email works today.
BTC market prices once again stagnated, hovering between $3,500 and $3,600. However, pessimistic scenarios see the price sinking below $2,000 if panic selling sets in. Still, even at this price, BTC has managed significant growth in the first decade since its launch.
While BTC remains important, separate assets seek ways to trade more independently, for a process of price discovery that does not depend on settlement through BTC pairs. In 2019, the expansion may continue for several protocols that gained prominence in 2018, including TRON (TRX), EOS and platforms built on a different principle of block production like Ripple and its XRP asset, as well as Stellar (XLM).
At the same time, mainstream interest in BTC investment has declined, and lately, one of the most stubborn ETF proposals, that of CBOE’s Van Eck fund, was pulled from the review process for an indefinite period.