Investors are greedy, that’s why another Bitcoin bubble is inevitable, Vinny Lingham, the co-founder and CEO of Civic believes.
As the cryptocurrency market has gone into hibernation, experts and analysts are producing predictions as to what comes after this prolonged period lull.
Vinny Lingham, the co-founder, and CEO of Civic, a blockchain company that specializes in identity security, believes that we will blow another bubble even more significant than the previous one for the cryptocurrency market. He shared his views speaking at the Chain Reaction event hosted by Blockchain Entrepreneurs Club South Africa (BECSA) in Johannesburg earlier this week, Mybroadband Magazine reports.
Lingham is a South African internet entrepreneur and a founder of Civic. His company raised over $33 million through an ICO in 2015. He spoke about the future of blockchain, the cryptocurrency market development and the issues of mass adoption.
“Do I think we’ll have another bubble? Probably, because people just don’t learn. Once it broke through $20k, it would run to over $100k and then we have the start of a new bubble-bust cycle,” Lingham said, explaining that he looks at the cryptocurrency market from a long-term perspective, while the bubble will be created by investor greed.
He explains the December bubble and the subsequent burst by disbalance between supply and demand as last year investor interest in digital assets and ICOs considerably exceeded the supply, while in the second half of 2018 the situation reversed. Now we have lots of ICOs and few buyers willing to purchase their assets.
Lingham harbors no illusions about the upcoming mass adoption for Bitcoin due to the significant scalability issues that hamper its development and reduce the scope of real-life use cases.
“Even though we are about a decade into blockchain technologies, we are still in the infancy. Primarily the number one use case for cryptocurrency outside of money transfers is trading. It’s mostly a speculation game,” he said.
Meanwhile, Lingham is not the only one who emphasizes the bubbly nature of the cryptocurrency market. Back in July and of International Settlement General manager Agustín Carstens called Bitcoin a bubble, a Ponzi scheme, and an environmental disaster.