The global crypto economy continues to fail largely in making up the reduction in value which it had lost in the past 15 days. However, a comment has been made by the boss of “Multicoin Capital” namely Kyle Samani concerning Bitcoin and its economy in which Samani suggests that the future of Bitcoin bears would not be the same as it was in the past and the present. Instead, he denied that would be any such “bears” for Bitcoin in the future.
Crypto investors have not forgotten the past which they had witnessed at the end of years 2019 and 2020. The Crypto market at that time was assumed to be a “full-on bear” market. However, it tasted economic hardship which washed away almost 80% of the entire economy. This year is, however, different than the past two years. Although, the recent crash also washed away 30% of the crypto economy, yet 30% decline against 80% is overwhelming.
On 13th December 2021, Kyle Samani, who is the Managing Director at Multicoin Capital issued future prospects of cryptocurrencies in a tweet. He started a topic of debate at Twitter concerning “crypto bearish”. In order to engage the audience in debate, he made a comment that the upcoming future of Bitcoin’s bearish market would be entirely different than the previous ones. Instead, he argued that there wouldn’t be any “bearish” in the future and, if somehow it does, then it wouldn’t be more than half.
Samani argued that crypto supporters can be divided into two categories. One category consists of people which are tech-savvy and therefore “tech crypto” people. The other category of people comprises people known as “money crypto”. He claimed that Bitcoin has been dominated by the people of the first category i.e. “tech crypto” since 2017.
He furthermore acknowledged that there is a very small percentage of people who consider Bitcoin simply as a “hedge”. However, when it comes to speaking about Bitcoin in public gatherings or before an audience or media, these persons’ participation is almost to none.
Samani noted that as compared to “tech crypto”, people in “money crypto” are keen on interest rates. They are even interested in the “politicization” of governing banks of the world. Eventually, the governing banks of the world as well as politicians are empowered to do certain things which could go against Bitcoin. Resultantly, Bitcoin’s status as a ‘hedge’ is compromised and jeopardized.
As regards “tech crypto”, Samani argues that bad things done to Bitcoin at the hands of governing banks/politicians don’t bother them at all. Their keen interest lies only in developing new things. He argued that if Bitcoin is reduced to 50%, tech crypto would continue to do what they were doing i.e. develop new things. On the other hand, investors would also continue to invest in their newly developed products because they have to.
In the end, he concludes that in the future the demand for Ethereum and Solana will increase. He thinks that as compared to Bitcoin, both of them are self-sufficient in terms of software while Bitcoin has none.