Vinny Lingham, CEO of Civic believes another bubble is coming driven by investors greed that will break $20k before running over $100k leading to the start of another bubble-bust cycle. He also shared the blockchain industry is far from mass adoption due to scalability and limited use cases issues.
First $20k will break, then $100k & then a new bubble-bust cycle will start
Recently, Vinny Lingham, CEO of Civic talked about the future of the crypto market and blockchain applications in an event in Johannesburg.
The event Chain Reaction was hosted by Blockchain Entrepreneurs Club South Africa (BECSA) that had a number of other speakers viz. Monero’s Riccardo Spagni and Marius Reitz, Luno country manager for South Africa.
While talking about the state of the crypto market, Lingham shared that the prices of the bitcoin and cryptocurrencies were driven up by the huge investor interest along with the rising number of ICOs. But this time, the demand from buyers is small in comparison to the high supply of ICOs.
“Last year, we saw an indicator of a massive amount of investor interest in the space and not enough supply. Right now you have way more supply of ICOs than buyers, and with the price of Bitcoin and other cryptocurrencies dropping, those buyers have less money to spend.”
As for if the prices will yet again skyrocket, though he believes slower and steadier growth with a more developed infrastructure, will be best for the Bitcoin, it is expected that investors will create another bubble stating:
“Do I think we’ll have another bubble? Probably, because people just don’t learn. Once it broke through $20k, it would run to over $100k and then we have the start of a new bubble-bust cycle. I have seen three or four bear markets and cycles. In bear markets, it is more about consolidating and going into high-quality coins like Bitcoin.”
Moving onto the blockchain industry, he says it is still far from mass adoption due to lack of use cases:
“Even though we are about a decade into blockchain technologies, we are still in the infancy. Primarily the number one use case for cryptocurrency outside of money transfers is trading. It’s mostly a speculation game.”
However, it will slowly change as the different use cases will be developed. Scalability is one such factor that needs to be the focus so that the speed and capacity of payment systems like Visa can be achieved.
“You shouldn’t do this stuff for the money, you should do it because you’re passionate about what the goals of the project are,” concludes Lingham.