Price volatility in the cryptocurrency market has been a key marker for the industry over the past few weeks. With the increase in the price of Bitcoin and other altcoins, the industry seems to have taken an uptrend, both in terms of developments and positive sentiment.
In a recent interview with the Intercontinental Exchange, Barry Silbert, the CEO of Grayscale Investments, talked about the micro and macro factors that led to the recent price hike. The Bitcoin billionaire right off the bat stated that the events in the space over the past couple of months acted as a sign that money was going digital. In his words:
“Based on history, we can see that fiat currency tends to not exist into perpetuity after some time. The average life of fiat currency is 27 years if you take the past 500 years as the sample space. Usually, these currencies get deflated or are destroyed due to debates or wars. Now I know that Bitcoin will not be able to completely replace the Dollar or the Euro but it is certainly gaining a foothold in the financial ecosystem.”
Silbert also took the examples of financial giants like JPMorgan and Goldman Sachs entering the crypto space as a positive sign. He was certain of the fact that the world will soon move into a non-fiat distributed decentralized form of money. According to the CEO, the current market movement of Bitcoin can be backtracked to its earlier lows. He said:
“If you look at the history of Bitcoin, we notice that at the price drawdown the market got comfortable that the lows were in. Post this, it was just a matter of when the flows were coming back and once the price recovered you could see the increase in capital and a massive boost in excitement across the industry.”
The Grayscale official, who was in the limelight due to the company’s DropGold campaign, claimed that the significant leaps taken by institutional investors also played a role in the market fluctuation. He specifically pointed to the proposed launched of Fidelity’s offramp as well as the much talked about Ameritrade launch as key factors for mainstream adoption.