Bitcoin 'will go to zero'
Some investors believe that bitcoin and other cryptocurrencies are still overvalued. gettyimagesbank
By Jung Min-ho
The price of bitcoin, the world's most popular cryptocurrency, is still overvalued and “will go to zero” eventually, according to Jeff Schumacher, founder of BCG Digital Ventures.
“I do believe it will go to zero. I think it's a great technology but I don't believe it's a currency. It's not based on anything,” the prominent crypto investor said during a discussion in Davos, Switzerland,
reported last week.
Glenn Hutchins, chairman of North Island, said bitcoin's role in the future may be focused on being a store of value.
“It might be that the role of bitcoin in the system could be to bring value back, to hold your value there while you have other tokens you aren't using at the moment,” Hutchins said.
“I am much less interested in investing around bitcoin as a currency unit or a currency equivalent, or even the blockchain as an accounting ledger. I am thinking much more about the protocols. In other words, what is the underlying protocol going to do as a consequence of which, which tokens are valuable or not.”
The comments underscored investors' growing skepticism about cryptocurrencies.
According to Coin Market Cap, a popular data source for price changes in crypto assets, the bitcoin price peaked at $19,310 per coin on Dec. 17, 2017, but crashed to $4,100 per coin as of Dec. 1, 2018. It was worth $3,606 per coin Jan. 27.