The most common question I was asked last week was about the price of Bitcoin and cryptocurrencies and what I think. I tend to look at price once a day so that I can be informed of the state of the market but I really don’t put too much weight on price. I focus on investing into companies, infrastructure, and applications to get mainstream adoption of the industry, price will come later and be a result of that.
I think two of the major factors that have contributed to this price decline are the recent SEC regulations of two token projects (see here
) and the forking of Bitcoin Cash (see here
The industry is still very early, and I think two factors will contribute to the next bull run, more usage of decentralized applications and institutional capital. Augur and 0x are starting to see some usage but we won’t see a significant increase of usage until cheaper and easier fiat onramps and much more scalable underlying blockchains. For institutions to invest into the space, we need to see more infrastructure around exchanges and custody. Companies like Bakkt, Eris, and Fidelity’s blockchain suite are helping with this.
The 2013 crypto bubble took some time to recover from, and we’ll recover from this one.