There is a “seismic shift” taking place in the cryptocurrency sector, according to Nigel Green deVere Group’s founder and chief executive.
The observation from Green, follows the cryptocurrency market recording a daily gain of $10 billion on 3 April, with bitcoin surging 6 percent on the same day.
Green, who launched deVere Crypto, an exchange app, earlier this year, stated: “There is a seismic shift taking place with cryptocurrency investments.”
He added: “Investor sentiment appears to have considerably changed in the first quarter of 2018. Towards the end of last year, crypto values went too high, too fast—and, of course, it was unsustainable. At the time I urged caution, saying an asset that goes almost vertically up should typically raise alarm bells for investors.”
“Arguably, even before the frenzied peak in December, when the price of one bitcoin reached an all-time high of more than $19,000, the market was beginning to become frothy and overheated. But since then, in this first quarter, there’s been a serious price correction of most major cryptocurrencies.”
Green stated that this has been caused due to an “evolution in investor attitude”.
Green said that now, the “overwhelming majority of investors do not view cryptocurrencies as a way to make a fast buck, as perhaps previously many more might have done”.
He said that, on the contrary, “they [investors] are now investing in bitcoin, ethereum, ripple, Dash and litecoin, amongst others, as they can see the core value over a longer time horizon”.
He added: “It’s our experience that people are nowadays investing in crypto primarily because they understand and value the need and demand for digital currencies in an increasingly digital age.”
“In addition, there’s a surge in public awareness that blockchain, the technology that underpins the likes of Bitcoin, is the world’s next major disruptive technology.”
Green also stated that since the recent G20 summit, regulation of the crytocurrency sector is “now inevitable”.
He concluded: “The digital coins are far from their all-time highs, but investors are still being attracted to the crypto sector in their droves. This underscores that they are increasingly becoming mainstream assets.”
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