Bitcoin is undervalued, individuals building on it will lead to recovery

[cybersofts]

Investor: Bitcoin is Undervalued, Individuals Building on it Will Lead to Recovery



Over the last 48 hours, following a large loss on Christmas, the Bitcoin price has recovered back to around $4,000.

The dominant cryptocurrency, which still holds a market valuation of over $64 billion, has demonstrated wild volatility in a wide price range from $3,100 to $4,300 throughout December, struggling to recover to November levels.

Last month, the cryptocurrency market was valued at around $220 billion. As of December 28, the valuation of cryptocurrencies remains at $133 billion, down $87 billion within a 30-day span.


Key to the Recovery of Bitcoin
According to Francis Pouliot, the CEO and co-founder of Bull Bitcoin, a company based in Canada, the asset will recover as individuals continue to build on top of the protocol and the infrastructure supporting the currency strengthens.

Throughout the past nine years, Bitcoin has consistently survived major corrections, which on some occasions worse than the 2018 bear market, as the builders, developers, and companies prepared to support the next wave of investors and users during a market downturn.



Bitcoin price (blue) vs. ethereum price (red) | Source: TradingView


Pouliot said:

    The way I see the price of Bitcoin: there are fundamental psychological, economics and social tenants that seem to create a similar pattern. Price rises fast, crashers down but at higher ladder with the new skin in the game added as value hodlers is discovered by the market. As an investor my these focus on the tail of distribution of Bitcoin network/ecosystem participants. Top new people active with skin+soul in the game, momentum, influence, resources, commitment, ideology, full nodes, sovereignty. It is People that give Bitcoin its value.

Cryptocurrencies were not present in the past when the global market demonstrated signs of a full-blown recession, and as such, the narrative of Bitcoin as a safe haven asset is yet to be tested by the market.

However, with leading economists expecting the U.S. stock market to face larger sell-offs in the first quarter of 2019 triggered by the rising Federal Reserve interest rate and the trade war between the U.S. and China, Bitcoin could serve as an alternative means of payment and long-term investment throughout the years to come.

On Time Magazine, Alex Gladstein the chief strategy officer at the Human Rights Foundation, wrote:

    To be sure, Bitcoin is still a nascent technology, and doesn’t offer cutting-edge usability, speed, or privacy. But engineers are constantly working to bring those attributes to Bitcoin by building better apps and on-ramps, upgrading the base protocol, and creating new second layer technologies like the Lightning Network, which could eventually mask and dramatically scale the number of possible bitcoin transactions per second.


Risk of Future Crash Declines
Throughout the past two years, many cryptocurrency-focused hedge funds have emerged with the intent of holding onto crypto assets as a long-term investment.

In the long run, Pouliot emphasized that as these hedge funds acquire tens of thousands of Bitcoin, the circulating supply of the digital asset will decline, restricting the potential amount of Bitcoin investors could buy in the public market.


Reference: https://www.ccn.com/investor-bitcoin-is-undervalued-individuals-building-on-it-will-lead-to-recovery/

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[davis196]

The CEO of Bull Bitcoin?
Of course that the he is going to preach that bitcoin is undervalued.He is a BTC bull,what else are you expecitng?
The CEO of some bearish crypto hedge fund will preach the exact opposite.Bitcoin is overvalued and it's aobut to crash.

[Harlot]

The way I see the price of Bitcoin: there are fundamental psychological, economics and social tenants that seem to create a similar pattern. Price rises fast, crashers down but at higher ladder with the new skin in the game added as value hodlers is discovered by the market.

I really want to believe this guy but he still failed on saying what is his reason that he thinks Bitcoin is somehow undervalued. This quote from him does't even come close to an explanation as he is just merely touching the facts of how Bitcoin needs to be fundametally undervalued yet he didn't explain why BTC for him is undervalued. As usual CEOs like this always gets away thinking that he is the smartest man giving opinion on where will Bitcoin be heading which is always the case when BTC has somehow bottomed out and is ready for a recovery.

[darewaller]

The great thing about this person is talking about is that 2018 was a year of bear market but bull investments. A lot of huge companies put money together to invest into crypto business and those business are now bigger and better. We have seen the problem with bitcoin and crypto market last year, it went upto 20 thousand dollars but failed to sustain it there and fell down a lot, when it falls down a lot the price is unstoppable and can go as low as 3 thousand dollars as we can see.

So what do we have to do? Find a way to sustain high prices and in case of emergency have a landing spot higher than 10 thousand for example (numbers could change). That can be done with higher investments and sustainable business around the world for crypto. Right now, this is what we have and in case price goes above 20 thousand ever again, we are now better prepared for it.

[bitbunnny]

It's hard to define if Bitcoin price is undervalued or overvalued because the price is defined by the market and supply and demand ratio. So, basicly Bitcoin has as big value as people are ready to pay for it at that very moment.
By now I learned not to pay much attention to such news and people who are not exactly experts for cryptocurrencies, this simply has no value for me and I don't think this is a relevant information.

[buwaytress]

The great thing about this person is talking about is that 2018 was a year of bear market but bull investments. A lot of huge companies put money together to invest into crypto business and those business are now bigger and better.

Not sure which investments and which big companies you're looking at, but the biggest businesses in crypto have generally contracted over 2018. From chip manufacturers like Bitmain closing down offices and rumoured to be letting go off more staff, to so called mining services like GigaWatt that's completely shut down, to even innovation hubs shuttering. Pure crypto hedges? The biggest and the best have been recording way below 60-70% losses. Business aren't getting bigger and better... and no, we don't have to find a way to "sustain high prices".

That's kind of the point of this whole year to me, maybe stop getting our fix off of price for a bit.

[Crypdon]

Bull bitcoin is going to say something like that. However, i think we all agree that bitcoin is undervalued, considering the limited supply and huge global demand it will go sky high. Especially when the business investors join the game

[1Referee]

Pure crypto hedges? The biggest and the best have been recording way below 60-70% losses.

Most of the best ones are those who "only" lost over 50% while the real losers had to shut down entirely, that's how poor of a performer these shitty funds are. Funds lead by fools believing that bull runs last endlessly.

The funniest thing is that most of those who run these funds have some level of legacy market understanding, and even that understanding wasn't enough to prevent them from making the biggest mistake of their careers. Losers. Everyone is an expert/guru/pro as long as every coin in the industry goes up in value, but we have and we still are seeing the smart ones seperate themselves from the 99% of the stupid ones.

Common sense is what's lacking in this space.

[BitHodler]

There is no such a thing as undervalued in this industry when it comes to decentralized crypto currencies. Difficulties come down, miners adjust to it, the whole market adjust itself, etc.

Bitcoin would be functioning perfectly fine around $2000 (not implying it will fall down to that mark), so do other crypto currencies. It's just the mindset of people that makes them consider coins to be undervalued.

Crypto in general is overvalued. It all comes down to people frontrunning the potential, which from time to time leads to bubbles which pop. 2017 was the most recent one and many more will follow....

[exstasie]

Pure crypto hedges? The biggest and the best have been recording way below 60-70% losses.

Most of the best ones are those who "only" lost over 50% while the real losers had to shut down entirely, that's how poor of a performer these shitty funds are. Funds lead by fools believing that bull runs last endlessly.

The funniest thing is that most of those who run these funds have some level of legacy market understanding, and even that understanding wasn't enough to prevent them from making the biggest mistake of their careers.

It's too bad hedge funds strayed from their original purpose, which was to hedge the market by short selling. Now they're just high risk/high reward gambling funds funded by whales with deep pockets.

I wonder if people with backgrounds in legacy markets just aren't wired for crypto. The stock market crash of 1929 was only an 85% crash. That's just a day in the life for bitcoiners and certainly for altcoiners, but it's the bar for "the unthinkable" among equity market analysts, who have never seen global crashes like that in their lifetime.

[pooya87]

It's hard to define if Bitcoin price is undervalued or overvalued because the price is defined by the market and supply and demand ratio. So, basicly Bitcoin has as big value as people are ready to pay for it at that very moment.

as far as i can tell, this is true about anything else in the world. you can't decide what the true value of anything is. in fact the concept of "intrinsic value" which you use to determine whether something is over-valued (in a bubble) or under-valued (in a reverse bubble) is a very abstract one which you will never find a concrete way of measuring it.
that is why you can't call something a bubble until it actually bursts. so, similarly you can't call something in a reverse-bubble until it actually bursts.

[buwaytress]

Pure crypto hedges? The biggest and the best have been recording way below 60-70% losses.

Most of the best ones are those who "only" lost over 50% while the real losers had to shut down entirely, that's how poor of a performer these shitty funds are. Funds lead by fools believing that bull runs last endlessly.

The funniest thing is that most of those who run these funds have some level of legacy market understanding, and even that understanding wasn't enough to prevent them from making the biggest mistake of their careers. Losers. Everyone is an expert/guru/pro as long as every coin in the industry goes up in value, but we have and we still are seeing the smart ones seperate themselves from the 99% of the stupid ones.

Common sense is what's lacking in this space.

That's exactly what I thought was funny too, actually. We're talking not about guys fresh off the graduation boat. These guys are veterans, some almost pension age with all those years of market experience... yet not a single one seemed to have the sense to take the most basic risk profiling, never mind risk management.

They were so keen to show double digit growth, in a period where triple digit explosions were rife. And now they're showing themselves for who they really are, very average traders who couldn't tell nous from luck.

[dothebeats]

'Undervalued' doesn't really apply to bitcoin on this regard, as anyone has their own perception of bitcoin's value and uses different metrics to determine their acceptable price point for bitcoin. I don't see institutional money getting stuffed on new platforms as development and growth honestly, but businesses starting up their footing on bitcoin's economy and making it big. Most said businesses has since shut down after the crash, and it's just a matter of time before others follow suit should the price continue to slide further.

[Red-Apple]

people are always in denial when it comes to bitcoin! i don't know why.

when prices are soaring without any reason, like when price spiked from $10k to $20k in about one month, they were saying how it is going to continue to rise and $50k is the next step.
now that it is extremely low without any reason, they seem to be in denial again talking about $2000 being the next step! and while they are chasing their own tail the whales are accumulating

[1Referee]

The stock market crash of 1929 was only an 85% crash. That's just a day in the life for bitcoiners and certainly for altcoiners, but it's the bar for "the unthinkable" among equity market analysts, who have never seen global crashes like that in their lifetime.

These dudes are the 'gurus' in their own market field, but have been degraded to rookies here in crypto. Charts don't lie, which is what these guys are well aware of, but still failed to pay one single second of attention to Bitcoin's past to see what the heck is going on with the market. This once again proves that the so called experts here are no different from a rookie trying to gamble his savings or borrowed money. In both cases they gambled and lost.

The real winners are those who sold the hype and buy back right now. You have more coins than before you sold, plus a massive gain in fiat. Not bad.

[arpon11]

The CEO of Bull Bitcoin?
Of course that the he is going to preach that bitcoin is undervalued.He is a BTC bull,what else are you expecitng?
The CEO of some bearish crypto hedge fund will preach the exact opposite.Bitcoin is overvalued and it's aobut to crash.

I believe that what the CEO of Bull bitcoin said is what most of us wants to hear!  I desire more bullish trend than the bearish one.  Bitcoin went as high as $19000 in December 2017 but it is currently below $4000 and we are saying it is not undervalued?
I think 2019, should be a recovering year as all of us especially those that buy bitcoin when it was above $10,000 and are still holding really desires it recovering. I only hear for the first time that at $3762 bitcoin is overvalued because I believe that bitcoin can go as high as $1,000,000 in future because of how important it is to our society.

[semobo]

people are always in denial when it comes to bitcoin! i don't know why.

when prices are soaring without any reason, like when price spiked from $10k to $20k in about one month, they were saying how it is going to continue to rise and $50k is the next step.
now that it is extremely low without any reason, they seem to be in denial again talking about $2000 being the next step! and while they are chasing their own tail the whales are accumulating

That is why they are still common people,they need to think out of the box,the big whales using as their tools to make money but accumulating our minds by what they want to tell us by different news and media.

[LFC_Bitcoin]

Just do what seems simple, now is a really good time for buying. What kind of idiot sells at this price? If you didn’t sell at $19,xxx then why the hell would you sell now.

Now is a time for accumulation, load up on as many cheap coins as you can afford to & celebrate later when we reach a new ATH, most likely in 2021-2022.