Bitcoin may bottom out at $14,000 in 2022, thousands of digital currencies collapse in broken blockchain
According to CNBC, some experts have just warned about the possibility of thousands of digital currencies collapsing, in the context of blockchain blockchains facing the risk of serious breakage.
It is known that there are more than 19,000 cryptocurrencies and dozens of blockchain platforms. This market is already shaky, especially after the recent collapse of LUNA. This is considered one of the biggest Black Swan events in the Crypto market because of its particularly severe impact. No one would have thought that a stablecoin would fall below 1 USD, or that a top-ranked cryptocurrency could plunge from 100 USD to only 0.0001 USD.
“One of the problems we are having is that there are basically too many blockchains out there. This makes it easy for users to confuse and face risks,” Bertrand Perez, CEO of the Web3 Foundation, told CNBC.
“Just like in the early days of the internet, you’ll find a lot of dotcom companies. Most of them are scams and don’t bring any value. Now, companies in the crypto space are more civilized and legitimate,” said Brad Garlinghouse, CEO of cross-border blockchain payments company Ripple. “However, sometimes I wonder if we really need 19,000 new cryptocurrencies, while in the fiat world, there are already 180 existing currencies.”
Bitcoin price fell within the past 1 month
Guggenheim’s chief investment officer, Scott Minerd, recently said that most cryptocurrencies today are “junk”, with the exception of Bitcoin and Ethereum. The above statement was made in the context of the cryptocurrency market being engulfed in a series of red trading sessions.
According to CNBC, Bitcoin is down more than 50% from its all-time high last November. Many experts also think that this currency will continue to plunge 50% from the current price, down to 14,000 USD in 2022.
“Based on Bitcoin’s past trends, 2022 will be the year of the biggest drop in price in a 4-year cycle,” said Ventures Founder.
However, on the positive side, this is an ideal time for investors to bottom out Bitcoin on the cheap.
“The next 6-12 months is an ideal time to buy Bitcoin as it has the best return ever. Although the coin hasn’t really bottomed yet, its price is in a cycle bottom range, so it’s good to buy,” said one analyst.
Cryptocurrency market is in the red
This view is in stark contrast to the advice of billionaire Bill Gates for investors. He has always been known as an opponent of cryptocurrencies, saying that this is just “something people decide to pay for each other” and does not bring anything back to society.
“I don’t own any cryptocurrencies. I like to invest in things that have an output,” said Bill Gates. “Bitcoin can go up or down based on anyone’s feelings or opinions, and I can’t predict that volatility.”
Meanwhile, blockchain platforms, from Ethereum to Solana, are all vying for the top spot. However, Brett Harrison, CEO of crypto exchange FTX US, said that not all platforms last forever.
“In 10 years, the market will not have hundreds of different blockchains. All will be classified gradually over time,” added Mr. Harrison.
Information about cryptocurrencies (cryptocurrency), commonly known as “virtual money” has not been recognized by law in Vietnam. The information in the article is for reference only and has no investment recommendation value.
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