Founder and President of the Chamber of Digital Commerce Perianne Boring believes Bitcoin’s (BTC/USD) fundamentals are strong as ever despite last week’s crash. She aired her opinions during an interview on January 24, saying volatility is not necessarily a bad thing for crypto and that it is normal to see 30-50% price swings.
According to Boring, the BTC market is behaving as expected, and although the price has taken a hit, the network’s essentials are strong as ever. She added that the BTC network is growing at an exponential rate. Boring believes this growth is faster than the internet in the 1990s and early 2000s.
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To substantiate these claims, Boring pointed out that BTC’s hashrate is at an all-time high, seeing as miners generate $32.00 million (£23.74 million) worth of BTC every day. Additionally, she believes the hashrate will continue increasing because BTC offers attractive economic incentives for more nodes to join its network.
In the interview, Boring noted that regulatory uncertainty is one of the biggest challenges that inhibit the widespread adoption of crypto technology. Nonetheless, she believes the sector is doing well despite lacking clear regulations.
Citing a survey from Fidelity Digital Assets, Boring said seven out of 10 institutional investors across the globe plan to purchase or invest in digital assets within the next five years. According to her, such a scope of adoption is completely inevitable in as much as the road to achieving such a milestone will be bumpy.
Boring added that the fate of digital currencies is already decided, claiming they are here to stay. To this end, all that remains is negotiating the regulatory guardrails that will help watchdogs supervise the nascent asset class. She acknowledged that regulators have justified concerns because some things need structure.
However, she believes regulators are addressing such issues, explaining why the crypto market is performing deplorably. Still, Boring claims that in the long run, governments will not have much power in changing the fact that BTC and altcoins are going to play a pivotal role in the global financial system.
Speaking about the recent selloff that has seen many people claim BTC could easily slip back to $8,000.00 (£5,935.88), Boring said investors should stop being myopically focused on its price while ignoring the value. She advised such investors to learn how to value an asset while making an investment decision.
Boring added that professional crypto investors leverage several tools that show BTC value, and these algorithms currently place BTC’s price between $50,000.00 (£37,107.25) and $100,000 (£74,214.50). According to her, this means BTC is undervalued at the moment.
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