During the Davos Economic Forum in Switzerland, portfolio manager Jeet Singh said in an interview with RT that the cryptocurrency volatility is nothing unusual, given the recent swings seen in the market capitalization which is now sitting at $566 billion.
Having been involved in the cryptocurrency market since 2011, Singh explained that it is not uncommon for these digital assets to fluctuate by 70-80% or even more.
Singh believes that one of the reasons for which the market is so speculative is the fact that those who got in at the late stages are now losing money, whilst those who got in early are still in profit and the volatility does not bother them.
“If you look at Microsoft or Apple when they went public their stocks were very volatile because the market wasn’t mature.”
Singh said that currently cryptocurrencies are used like store of value, adding that people tend to hold cryptocurrencies that have more value over time.
“There are not so many vendors right now who accept cryptocurrencies but there’s huge adoption on the black market.”
In countries which have huge inflation, for example, Indonesia and Thailand, people are accepting cryptocurrencies as payment for different services. There is a high rate of adoption among farmers, especially tobacco and coffee farmers.
“In different countries bitcoin is qualified differently, but to me it’s more than a currency. US sees it as a commodity, Switzerland sees it as a currency.”
Singh predicted the fact that Bitcoin could hit $50,000 in 2018, despite going through an initial period of volatility.