The CEO, and founder of Civic, an identity protection, and management startup, Vinny Lingham shed light on his views about the current state of the market, the Bitcoin (BTC) crash and its possible reasons.
Vinny Ligham stated in an interview with CNBC that, according to him the BTC hasn’t really hit the bottom and the crash could probably continue further. The cryptocurrency market is in a “despair state” as BTC dipped below the $5,800 mark, which to most people was as bottom as the token would spiral.
He added that at this point BTC could go either way:
“My best guess would be somewhere between $2,000 to $3,000, but it could go lower it might be higher but you know, it’s not $500 obviously but I think the current $4,000 level is getting closer.”
Lingham explains that his predictions aren’t merely guesswork, they are based on market fundamentals and basic economics. He noted that too many cryptocurrency companies are not generating enough revenue as currently buyers are overpowered by sellers. Notably, to generate revenue fiat money is required, which is controlled by the miners.
In saying that, he also extended his support to the crypto ecosystem:
“I’m a big believer in crypto for a long-term and I think we’re gonna have market caps in the trillions but right now we’re gonna have to take some pain because we got over-exuberant.”
Lingham blames the current brutal collapse of the market on the recent forking of Bitcoin Cash. He states that a number of aspects have led to this crash and “hash wars” is one among them. Indicating the recent postponing of Bakkt’s BTC futures, he added that institutional facilities like Bakkt or Fidelity wouldn’t get into the current market, as there is too much risk involved.
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