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Market forecaster and founder of Bianco Research, Jim Bianco in a recent interview to the media publication highlighted the increasing volatility in the crypto market. This is mainly due to the adoption of the new technology that leads to volatile nature in the crypto market.
The Crypto market is very volatile. If the investors have the potential to cope with the massive double-digit price swing, they will prevail eventually. Market forecaster and President of Bianco Research, Jim Bianco himself owns Ethereum instead of Bitcoin. He believes that Ethereum will reach its pinnacle in the time to come.
Jim Bianco’s research organisation is known for providing data-driven valuable information into the economy. Hence, the researchers believe that cryptocurrency is reforming the financial system. Bianco assures that the people sitting with their crypto on hold, need not worry about the volatility. He further believes that this will give them a big reward in the end.
Bianco thinks that speculative betting masks a long-term bullish picture. Being a big-time supporter of cryptocurrency, Bianco sees the market as very promising. He shares, the problem is with the other engine which is out of control of the casino. People betting on these coins go up and down.
Vulnerability at its peak
While cautioning the traders, Bianco said that the coins are extremely vulnerable to a 50% to 70% slump. This decline could be seen at any time as this is a new technology.
However, when the adoption is completed then crypto will have a fundamental role to play in the economy, prices will be majorly higher. It could also burn a hole in the pocket of the investors but will be fruitful for the long run.
Does that mean that the gains will be a lot less from that point onwards? Of course, see the market forecaster. There will be low risk and low rewards currently, but when the adoption has completed the volatility will come down.
The coins’ basket
Bianco himself owns a basket of cryptocurrency but he is a believer in keeping it to himself. He has been purchasing coins since 2017. He usually does not trade them and rather sells them once or twice a year.
There is more exposure to crypto because space is showing more ties to other risk assets including stocks. Bianco said that this was not the situation three to four years ago.
Earlier in March, Bianco had also highlighted that DeFi is recreating the entire financial system. Defi could jiffy the current financial system the way the internet disrupted newspapers.
He had referred to the move from traditional, centralized financial systems to decentralized platforms enabled by blockchain technology.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
