According to the Ethereum Co-founder Coin Market forecast, many new cryptocurrency projects will eventually fail. However, this might only strengthen the most basic and powerful coins on the market. What is your opinion?
9 January, AtoZForex – While the cryptocurrency market continues to be on top of all the hot news stories, the opinions in regards to these investments are divided into two major camps: opponents and supporters of Bitcoin.
Ethereum Co-founder Coin Market forecast
Some of the cryptocurrency critics believe that Bitcoin is a bubble. However, numerous industry insiders argue different points of view. One of the latest to share his outlook on the digital currency market is a well-known person in the crypto community – Charles Hoskinson.
Charles Hoskinson is CEO of Blockchain research firm IOHK and the Ethereum co-founder. He stated that the cryptocurrency market will strengthen following the failure of altcoins that lack substance. He has added:
“My personal opinion is that we’re going to see a consolidation after a crash.”
A myriad of alternative digital currencies has been advancing in the recent weeks due to the increased investors’ appetite. For instance, Ripple has hit the record high above $3,70 for the first time ever. It also has temporarily overpaced the now second biggest cryptocurrency in the world by market cap, Ethereum.
In the meantime, some of the less-popular digital currencies have also rallied remarkable, thus sending the total market cap to above $800 billion. Now, this figure stands at $725,198,358,465.
Many Crypto Projects will fail
However, Mr. Hoskinson has stressed the concerns about the ‘unrealistic’ digital currency projects that join the market. He has stated:
“What’s going to occur is a lot of these ventures that don’t have strong fundamentals, don’t have good tech, or just unrealistic projects, they will eventually run into some major wall they can’t quite overcome. They will fracture up and you will see a lot of them are certain to fail.”
Yet, Mr. Hoskinson has added that a number of these project might not fail anytime soon due to the sufficient funding they receive. He stated:
“The problem is a lot of them have a lot of money. It’s really hard to fail when your burn rate is $5 million or $10 million a year, and you have $1 billion of capital.”
Think we missed something? Let us know in the comment section below.