- Cryptocurrency analysis and research platform, Messari’s co-founder Dan McArdle went on Twitter to state that macro trends in the economy.
- cryptocurrency brought in attention to the cryptocurrency field which in turn brought up the market value for the currencies.
- The technological innovations in the field have only contributed to smaller price hikes in the market value.
He claims that popular innovations in the field like the Bitcoin Lightning Network, DeFi, or other stablecoins were not the reason for the development factors that yielded the growth in cryptocurrencies in 2019.
Still, instead, it was the economic concerns, investigations, and talks concerning bitcoin and other cryptocurrencies in general, which attributed to the growth.
Issues like negative-yielding debt, $1 trillion budget deficits, federal report operations, and the talk surrounding modern monetary theory (MMT) and cryptocurrency brought in attention to the cryptocurrency field which in turn brought up the market value for the currencies.
McArdle’s opinion makes more sense when observing how the price trends in cryptocurrencies have happened mostly around the times when there has been awareness around the matter brought into the public light either by forms of economic concerns or by studies or reports on cryptocurrencies.
The technological innovations in the field have only contributed to smaller price hikes in the market value. An excellent example of this is when Bitcoin broke the $8,000 market value last week when the Iran airstrike reported on a U.S. base.
Bitcoin’s value reactions to geopolitical events have been very prominent like such as when compared to the release of the bitcoin lightning torch which increased market price by just a few 100 dollars before plummetting back down a couple of days later.
McArdle’s tweet was responded to by cryptographic transaction processing software provider, Ciphrex CEO, Eric Lombrozo siding with McArdle stating that all bitcoin needed to do to succeed was remain decentralized and survived.
Lombrozo went on to mention that along with the effort to stay out of centralized control, attaining more privacy at the base layer and better understanding fee economics and managing long-term sustainability would be desirable but not at the expense of decentralization.