The partner of one of the blockchain industry’s pioneering VC firms is “super bullish” on crypto but believes that bitcoin is leading the pack.
Talking yesterday to CNBC’s Fast Money, Spencer Bogart discussed the state of the cryptocurrency industry, why he thinks the market has generally slumped in 2018 and why he still believes bitcoin to be a good buy.
Explaining his views on the general bitcoin market, Bogart qualified his general optimism:
I’m super bullish on crypto right now but does that mean that I think that things cant go lower? It doesn’t – I think the prices are prices are pretty good right now if I was looking to buy something like bitcoin.
More specifically, he thinks that the market-wide slide in prices that has characterised much of 2018 so far has its roots in crypto-hedge funds:
But specifically why prices might go lower we are talking about a fund redemption cycle: so if we go back to the summer of 2017 when crypto prices were booming there was about 100, 200 maybe 300 new crypto hedge funds that were formed…well now here in the summer of 2018 a lot of them are hitting the end of their one year lockup. That means that the LPs in those funds are now looking at a down 50% year and..want to redeem out of that fund.
Bitcoin Still King
Adding that bitcoin’s price is still “very attractive” at today’s prices, Bogart was keen to point out that he still sees bitcoin as the most promising cryptocurrency despite the enormous proliferation of altcoins.
Emphasising four factors that set bitcoin apart: the “mindshare,” “distribution,” SEC regulatory approval and the fact that BTC has shown a “real use case,” he explained:
Bitcoin has the mindshare, the distribution.. almost every major country has a fiat on-ramp where people can use their US dollar their British pound to buy some bitcoin – no other coin has that distribution…. Bitcoin is the only one that has demonstrated its real use case and traction…people are riding in the cars today with bitcoin.
Bitcoin has enjoyed a mini-bull run at the end of July – surging past the $8,000 mark this week for the first time since May.
With many suspecting that anticipation of SEC approval of bitcoin-related ETFs might be behind much of the bullishness, it will be interesting to see if and when the market bears out Bogart’s optimism.