Scott Minerd, global chief investment officer at Guggenheim Partners, believes that if Bitcoin (BTC) drops significantly below the $30,000 zone, it could potentially collapse further. Also stating that he is not a dominant player in crypto yet, Scott Minerd thinks that the majority of crypto is garbage, he bets on BTC as one of the options.
“Bitcoin (BTC) has a lot more room to go down”
Scott Minerd, If Bitcoin drops significantly below $30,000, it’s worth 8,000 miles for it. believes it will be dollars. That’s why, he adds, ‘we have a lot more room on the downside’, especially when you see that the Federal Reserve, which you also follow on Kriptokoin.com news, is currently implementing restrictive measures on the economy to rein in inflation.
Describing this as a sad situation, Scott Minerd points out that although technical factors are better than other cryptocurrencies in the market, this is in BTC.
"When you break below $30K consistently $8K is the ultimate bottom. So I think we have a lot more room to the downside," says @ScottMinerd on #bitcoin. "Ethereum, Bitcoin will be survivors…I don't think we have seen the dominant player in #crypto yet." pic.twitter.com/5XmxLqPnlK
— Squawk Box (@SquawkCNBC) May 23, 2022
“Bitcoin, Ethereum will survive but they are not dominant players”
Scott Minerd states that the majority of cryptocurrencies are ‘non-currency, insignificant’. However, he also believes that there will be survivors in a market of 19,000 tokens as the future is crypto.
According to Scott Minerd, these survivors could be Bitcoin and Ethereum. However, he does not believe that these two assets (or other recently favored coins like Solana) will be the dominant players. The Guggenheim CIO says he has yet to see a dominant player in crypto.
Scott compares the current crypto market to the dot-com boom of the late nineties (a popular metaphor) and says Yahoo was one of the leaders at the time. However, he notes that it is impossible to predict the emergence and success of Amazon and Google.
“There is no correct prototype yet”
According to Scott Minerd, who basically believes that the correct crypto prototype has not yet been created, in the future The ultimate winner could be something other than Bitcoin and/or Ethereum. For a true cryptocurrency to exist, it must meet three criteria: a store of value, a medium of exchange, and a unit of account. Scott Minerd states that the majority of existing cryptos fail to meet even one of these criteria.
He talks about stablecoins as an interesting experiment in this respect. But he thinks that in the future, a new technology may emerge and an ecosystem will be built on it so that people can comfortably use it for transactions and as a store of value.
