Global CIO of Guggenheim Partners believes that Bitcoin has a long way to fall given current state of things on market
Scott Minerd, global chief investment officer at Guggenheim Partners, shared with a CNBC Squawk Box co-host in Davos today that he thinks Bitcoin can potentially crash further, if it drops significantly below the zone. of $30,000.
Besides, he stated that there is no dominant player in crypto as yet. But he bets on BTC as one of the options, since the “majority of crypto is garbage.”
“We have a lot more downside room”
Minerd believes that if Bitcoin falls significantly below $30,000, the ultimate bottom would be $8,000. Therefore, he adds, “we have a lot more room on the downside,” especially as the Federal Reserve is currently implementing restrictive measures on the economy in an attempt to bring inflation under control.
That being sad, Minerd pointed out that this is happening to BTC despite its technical factors being better than those of any other crypto in the market.
“Bitcoin, Ethereum will be survivors but they are not dominant players”
Minerd said the majority of cryptocurrencies “aren’t currencies, they’re junk.” However, he thinks there will be survivors in a market of 19,000 coins since crypto is the future.
These survivors, according to Minerd, may well be Bitcoin and Ethereum. However, he does not believe these two assets (or any other recently favored coins, such as Solana) to be dominant players. Per the Guggenheim CIO, he has not seen any dominant players in crypto yet.
Minerd compared the current crypto market to the dot-com boom of the late 90s – a popular metaphor – saying that at the time, Yahoo was one of the leaders. However, it was impossible to predict the emergence and success of Amazon and Google.
“There’s no right prototype yet”
Basically, he believes that the right crypto prototype has not been created yet. It could be something different from Bitcoin and/or Ethereum that will be the ultimate winner in the future.
For there to be a real crypto-currency, it would have to meet three criteria: be a store of value, a medium of exchange and a unit of account. Minerd believes that the majority of existing cryptos cannot meet any of these criteria.
In this respect, he referred to stablecoins as an interesting experiment. But in the future, he reckons, a new tech may emerge and an ecosystem will be based on it, so that people feel comfortable using it for transactions and as a store of value.
