Ruchir Sharma, famous investor at large, has compared the decline in Bitcoin prices to the downward trajectory of Amazon. Like Amazon rising again, so too will BTC.
Sharma, the Chairman of Rockefeller International, expects the decline to continue in the short term, although he has positive expectations for the leading cryptocurrency.
Ruchir Sharma: Bitcoin Could Make a Comeback
Ruchir Sharma joined the caravan of famous names who believe in the future of BTC. Sharma expressed support for the idea of a currency regime that is not tied to the US dollar. According to the famous businessman, although there is no currency to replace the dollar for now, Bitcoin may be an alternative in the future.
“The dependence on the U.S. dollar, in general, cannot continue. There is a need for having another currency out there with some transactional need, which is a bit more stable in value. Three to five years from now, hopefully BTC will emerge as a more stable asset.”
According to Bitcoin-friendly Sharma, BTC could follow a similar price trajectory to e-commerce giant Amazon. The famous investor stated that the rise of Amazon (AMZN), which experienced a 90% decline in the past, could be reflected in BTC prices of the future.
In the early 2000s, with the dot-com collapse, there was a serious loss of value in Amazon shares. But over the next 20 years, the shares managed to appreciate more than 300 times. The Rockefeller Chairman says that BTC has not yet completed its collapse.
It’s Not Time To Return Yet
Ruchir Sharma pointed out that a harsh crypto winter may continue in the next six months for Bitcoin.
And, in the next six months there could be further drops, in line with a decline in U.S. stocks. He said that bear markets usually last about a year and stocks fall 35%. “This current bear market is less than a year old and the S&P 500 has fallen by just 20%.”
Sharma drew attention to the moves by the FED and said that he did not expect the risk appetite to open yet.
“I’m not willing to call the bottom as of yet on bitcoin and cryptocurrencies. The U.S. bear market regime, which is the driver of risk appetite around the world, is still very much in play.”
In conclusion, the global collapse still isn’t complete, but watch this space.
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