According to Managing Director and Chairman of Rockefeller International, Ruchir Sharma, Bitcoin (BTC) is essentially a good idea that has been tainted by too much cheap money and speculative interest. “We need the excesses to get weeded out,” he told CoinDesk TV.
Sharma said Bitcoin could make a comeback just like e-commerce giant, Amazon, which fell by about 90% during the dot-com crash in the early 2000s, but subsequently rose in value more than 300 times over the next 20+ years. He believes that after weeding out the surplus, “we can see the emergence once again of bitcoin and cryptocurrencies, as a steadier asset.” In the Chairman of Rockefeller International's opinion, for now, Bitcoin remains “caught up in this speculative mania,” whose global collapse still is not complete.
Sharma concedes that further declines could occur in the next six months, at least in part due to continued declines in U.S. stocks. He noted that typical bear markets last about a year, with stocks falling 35%. The current bear market has lasted less than a year, and the S&P 500 is down only 20%.
“I’m not willing to call the [market] bottom as of yet on bitcoin and cryptocurrencies,” he said. “The U.S. bear market regime, which is the driver of risk appetite around the world, is still very much in play.”
Sharma supports the idea of a currency regime that is not based on the US dollar. He suggested that although there is no currency that can replace the dollar, Bitcoin could be the answer.
“The dependence on the U.S. dollar, in general, cannot continue… There is a need for having another currency out there with some transactional need, which is a bit more stable in value… Three to five years from now, hopefully [bitcoin] will emerge as a more stable asset.”
© 2022, Eva Fox | Tesmanian. All rights reserved.
We appreciate your readership! Please share your thoughts in the comment section below.
About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.