According to Ruchir Sharma, Managing Director and Chairman of Rockefeller International, Bitcoin (BTC) is basically very cheap. But spoiled after speculative attention, it’s a good idea. Here are Sharma’s latest comments…
The bottom has not yet come in Bitcoin and altcoins
Sharma, a former market investor at banking giant Morgan Stanley (MS) and also a New York Times best-selling author, said Bitcoin could return in a similar fashion to e-commerce giant Amazon (AMZN), which has dropped nearly 90 percent. told. In the early 2000s, dot-com Amazon lost value. But over the next 20-plus years, it has gained more than 300x in value. According to Sharma, first, “there are surpluses to weed out” in Bitcoin. After that, we will be able to see Bitcoin and cryptocurrencies emerge once again as stable assets.
He said that for now, Bitcoin is “stricken with this speculative frenzy,” whose global collapse is still unfinished. Back to the Amazon instance. He noted that this company took some time to recover. Indeed, it took several years for the online sales company’s stock price to reach and exceed the 1999 “bubble” level.
For Bitcoin and other digital assets, Sharma says the next six months could see further declines, at least in part due to the continued decline in US stocks. He noted that typical bear markets last about a year and stocks are down 35 percent. For now, the S&P index is down 20 percent. Noting that he is not willing to see a bottom yet, Sharma thinks that the strength of the worldwide risk appetite is influenced by the US markets.
Markets seek diversity
Sharma supports the idea of a non-US dollar-based currency regime. Although there is no currency to replace the dollar, he thinks Bitcoin could be the answer. Saying that the dependence on the US dollar cannot continue in general, the expert points to other currencies that can meet the transactional needs. Three to five years from now, he thinks Bitcoin could emerge from this angle. So, according to Sharma, “the window of opportunity is open.” However, speculative excess needs to be cleared first.
rise in india
Sharma is optimistic about crypto in India, saying the level of government control of cryptocurrencies is low. Economically, the country’s use of Bitcoin and other cryptocurrencies to pay via direct digital transfers helps ordinary residents. “A country like India really shows you how building a good public digital infrastructure can help transform people’s lives,” Sharma said. “Probably the most important economic development for India,” he added.
