The cryptocurrency market may increase by a factor of ten within two years. That’s what co-CIO Pantera Capital thinks, Joey Krug. He expressed his forecast in an interview with Bloomberg on Tuesday, 16 October.
Krug said that improving Bitcoin’s scalability (BTC) is necessary to trigger another boom. As he noted, “if you do not have scalability, you do not have market makers.”
The breakthrough is close?
The commentary appears now, a few days after the new important event on the market of institutional clients interested in digital currencies. The company Fidelity Investments has revealed that it is testing a special solution for investors and hedge funds, which is to increase the security of investments in the cryptocurrency market.
While the reactions from finance, such as Michael Novogratz from Galaxy Digital, were positive, the news has not changed the general mood on the stock markets yet, nor has it caused price increases on the bitcoin, altcoin and tokens markets. According to Kruga, this is because the market moods regarding Bitcoin are still dependent on improving the efficiency of its network. More and more market observers even have doubts as to whether Bitcoin itself is “able” to compete with payment networks such as Visa and MasterCard.
Krug is also skeptical:
“I do not know if this will ever happen with Bitcoin, but I think we’ll see blockchains as fast as Visa or MasterCard over the next few years.”
He added that just such improvements can trigger a ten-fold increase in prices in two years. Developers are still working on improving the number of transactions that Bitcoin can deal with, mainly through non-chain solutions such as Lightning Network.
The crisis in the cryptocurrency markets has been ongoing since January 2018. It is also a test for Pantera Capital, because according to data published in October, the Digital Resources Fund has fallen by more than 40 percent since its inception.