The rise of cryptocurrency will continue even as Bitcoin’s tumble damages its reputation, and investors should not be worried about the current market volatility, say experts.
“The entire cryptocurrency market cap is less than $100 billion … it is very small and that’s why it is volatile at times,” Andrea Bonaceto, chief executive of Eterna Capital – according to a London-based fund management firm.
“In 2011, it was assumed that Bitcoin is dead because it dropped from $32 to $2, but it came back strongly. These downfalls are embedded into any early-stage industry,” said Mr Bonaceto.
A year ago, the value of a single Bitcoin reached almost $20,000. Now, one Bitcoin is worth roughly $3,000 – a massive drop from its 2017 high. However, even that vastly reduced value is still far above the $1,000 it commanded at the start of 2017.
Industry experts feel now is the best time to invest in Bitcoin.
“From the investor point of view, this is the best time in cryptocurrency history. Obviously, no investor would like to invest when Bitcoin was hovering around $20,000,” said Mr Bonaceto, who was one of the speakers at Global Blockchain Congress in Dubai on Wednesday.
Market analysts say security is a fundamental concern with cryptocurrency. More than $1.1 billion was lost to thefts in the first six months of 2018, according to Massachusetts-based cyber security company Carbon Black.