The founder of TenX warns of a long stretch of duration where the crypto community is expected to experience a crypto winter. This crypto winter is said to arrive before 2020. The TenX co-founder expects this winter to be one that is quite cold.
Julian Hosp, the outspoken co-founder of TenX, recently participated as a guest on the popular business show CNBC Squawk Box. His host, Dan Murphy, inquired of the chances of a potential and when that would take place for the world of cryptocurrency. Julian quickly responded, stating that the dip would undoubtedly take place, but believes that it will not be one that will arrive soon, He thinks one should be present in the long run.
That’s certainly a conservative statement and hearkens back to the time that John Maynard Keynes said that in the long run, we’re all dead.
In the long run, as business cycles take place there will be dips and rises, fortunes go to those who can prepare for each aspect of the cycle.
“Let the good times roll.”
Julian did make an excellent point about the short term. He does not expect any significant dips to happen in the short term, meaning that there are brighter times ahead.
Many have paused as the past few weeks have been a bit bumpy for Bitcoin and for altcoins in general. Relatively recently, the Bitcoin investors experienced a day that would be considered as a bloodbath, and the overall market was down as well.
Bitcoin has rebounded, so has the rest of the market and the crypto community continues to progress further.
Volatility and Digital Gold
Julian was asked about the aspect of volatility in the market and then about how the volatility impacts the utilization of Bitcoin as a means of exchange. The co-founder answered that the digital asset, Bitcoin, serves as more of a storehouse of value similar to gold, rather than what is currently defined as currency.
Julian continued his comments by stating that, “I think many people also see, especially in Bitcoin, more of a digital gold.”
Investors can look at Bitcoin as a hedge against the fiat system, even though there is volatility in the short term, it seems that as the market progresses that Bitcoin should eventually stabilize.
He reiterated that if one were to compare Bitcoin to traditional currencies across the globe, “Bitcoin might be a better store of value for some time.”
This exactly what we are seeing for countries like Venezuela and others that have political and economic turmoil. This is certainly an interesting point for many countries like Argentina, Greece, Spain, and others have significant debt and are in the process of figuring out how to structure their finances accordingly.
Uncertainty in the political and economic sectors of many countries is a certainty; thus, ironically, Bitcoin can serve as some certainty for people all over the world.
Digital Assets, Appreciation, and Depreciation
As the market progresses, as in all markets, there will be winners and losers, if one chooses assets that have value in the short term and long term, one will be better off. Julian notes that there will come a time when there will be corrections in the market and those that don’t have substance will have to die off.
“I think just like we had in the dot.com, we’re going to see a huge appreciation of these currencies, but to be dead honest, I think there’s only going to be a small fraction of these currencies that have meaningful value and they’re going to be here to stay.”
He believes that over time the money will flow into the companies that are building out useful technologies that will be able to improve the lives of people.