Joey Krug believes the cryptocurrency market is close to bottoming out. The Pantera Capital co-chief investment officer says scalability is the catalyst for the next significant bull run which would bring about a 10x increase in total crypto market capitalization.
Cryptocurrency Market is Currently Range Bound
Speaking to Bloomberg, Krug said the cryptocurrency market was range bound and close to bottoming out. Since the start of Q3 2018, most cryptocurrencies have experienced sideways trading with temporary rallies followed immediately by pullbacks.
Recently, positive developments like Bakkt and Fidelity haven’t caused any upward movement in digital currency prices. According to Krug, the market is waiting for a catalyst to usher in the next bull run. Commenting on the matter, Krug said:
At this point, the market is waiting for actual adoption to start the pick-up. To get that, you need scalability.
Earlier this month, Mike Novogratz of cryptocurrency merchant bank Galaxy Digital predicted that Bitcoin wouldn’t top $9,000 in 2018.
No Scalability, No Market Makers
On scalability, the Pantera co-CIO characterized it as a computer science issue. According to Krug, the solution lies within the realm of coding programming which makes it simultaneously easy and difficult to achieve.
Furthermore, Krug said since the virtual currency realm deals with markets apart from only decentralized applications themselves, then without scalability, there wouldn’t be market makers. Despite the attempts being made by several companies to address the blockchain scalability issue, Krug believes a workable solution is still a couple of years away.
Apart from scalability, Krug also identified the cost of changing fiat into digital currency as another issue stalling market growth. However, the Pantera co-CIO said the emergence of more robust exchange platforms would materially diminish those costs.
10x Increase in Next Cryptocurrency Bull Run
Krug also went on to predict a significant bull run for the entire cryptocurrency market once the issues surrounding scalability and transaction costs are solved. The Pantera co-CIO predicted a 10x increase from the present market value.
At the time of writing this article, the total cryptocurrency market capitalization stands at $210 billion. If Krug’s prediction is accurate, this value will become $2 trillion by 2020.
Do you agree that scalability is the catalyst for the next significant cryptocurrency bull run? Let us know your thoughts in the comment section below.
Image courtesy of Twitter/@PanteraCapital and Shutterstock.