Successful American Investor’s Prediction: Bearish Run in Cryptocurrency Prices Will Terminate in 2019
S&P, Standard and Poor’s Index, is a list of 500 predominant stocks at the exchange market in New York and Nasdaq. This list is used to compare transactions and stock trading and also evaluate the performance of big active companies in the capital market. All in all, through risking and big companies’ efficiency, this index evaluates the general performance of the stock market.
Fred Wilson, an American risk-taking and legendary investor, talked about effective phenomena of the world economy. He remarks that 2019 might be a unique year for alert and cautious investors. in 2019 there will be some signs of life in the world of digital currency.
Fred Wilson believes that the United States will experience the regulatory change. It will be influential on the economy and capital markets. He noted that: “capital markets in the United States started 2019 in an unstable and shaky condition; although, the last week of the last year (2018) brought along a relief rally; however, the market faces higher rates. Some of the primary signs of a weaker economy are observed in 2019.”
He expects that S&P 500 exchange stock index will drop sharply and the increase of interest rate would be influential to the customers and commercial loans.
S&P, Standard and Poor’s Index, is a list of 500 predominant stocks at the exchange market in New York and Nasdaq. This list is used to compare transactions and stock trading and also evaluate the performance of big active companies in the capital market. All in all, through risking and big companies’ efficiency, this index evaluates the general performance of the stock market.
Indeed, the capital market includes the total value of all stocks released by a company; it involves 80% of the capital market; however, in order to select from this list, just the American companies with at least $5.3 billion of market value are qualified. Furthermore, among the other conditions of being in this list is that at least 50% of the stocks in these companies should be liquid and available for the public, the stock price should be at least a dollar per stock and profitable in four consecutive periods of the financial year.
Investing and business development companies are placed in this list too.
Moreover, he stated that “when raising the loan gets costlier and more difficult, the marginal project will not be supported and funded, the event taking place at the margin will have a greater influence on the economy than what the people think.”
He, who is the inventor of successful projects like Twitter, says that: “with the exit of the United Kingdom from European Union, which is famous by “Brexit,” European businesses will be in the defensive mood.”
“Brexit” refers to the exit of Britain from European Union. According to a referendum regarding the exit in 2016, the British government announced that it would begin the formal procedure to exit from European Union on March 29, 2017, and would exit from European Union on the latest possible date of March 31, 2019. This exit is a political purpose which has been followed by defensive people and groups and political parties in Britain as for its joining to European Union in 1973.
Wilson pointed out that probably the greatest unknown phenomenon in the world economy is the result of increasing transactional struggles and tensions between China and the United States. The above issue along with the decrease in GDP will influence the most powerful engine of global growth in China. He thinks that startups and technology domain will remain secure to some extent.
GDP, Gross Domestic Product, is one of the assessment scales in the economy. In fact, GDP includes some of the values of final goods and services which are produced in a specified period of time in a country. By “final goods and services,” we mean those accommodated at the end of the production chain and not bought for any other production and service.
In fact, Wilson believes that there will be no clear difference between active companies in technology and startups; since we move from the industrial economy to the one founded on information.
Digital currencies will reach the lowest price level, and the market will benefit from the bullish trend.
Regarding cryptocurrency prices, Wilson stated that: “I think we are in the process of finding the lowest price for big, easy and stable digital currencies, but in my idea, this process might spend the major portion of 2019 to be realized.”
He believes that the start of the bullish market can occur after decreasing prices, but:
“the end of prices decrease process will occur in 2019, and we will slowly enter a bullish stage again.”
He expects successful digital currency market projects launched in 2017 to be exploited and delivered in 2019. Wilson pointed to the projects such as Filecoin, Protocol Labs and Algrand from his own company stocks and told that: “we will see the next generation of smart contractual platforms which challenge Ethereum (a type of encrypted currency) as a very important leader in this part of cryptocurrency.”
However, Ethereum will react with its development and defense its leadership in this area. Besides, Wilson expressed his concern that legislators damage some high-quality cryptocurrency projects by some incorrect information and the fact that 2019 will have its own scams, hacking and failed projects.
“this innovation will receive high efficiency in time, needless of any license, followed by destructive and unavoidable players and activities.”
His prediction was not a divine message! Rather, he reflects the market and digital currency society trends. Now, the time is ripe for some key Blockchain (an encrypted safe platform wherein the transactions are recorded) and cryptocurrency (a type of encrypted currency on Blockchain platform) projects, especially those earned high capitals to be delivered. The time of putting such event into action will be highly exciting, and it should be in 2019. Further, 2019 is perfect for the great banks entering the realm of digital currencies at large.
The blockchain is an encrypted infrastructure on which cryptocurrencies are founded. This technology provides security for encrypted currencies. Therefore, no one will be able to manipulate the history of transactions, and this history will be transparently available to users. Bitcoin was the first digital currency based on Blockchain that was introduced to the market. This encrypted platform has four main benefits:
• Not being controlled by any institution or person
• Impossible to face failure and cessation
• Recording transactions in a connected network of all users
• The necessity of manipulating the whole network in case of the need to manipulate Blockchain information
This risk-taking investor further believes that cryptocurrencies are not considered a “safe haven” against stock market drop; however, they will be a possible target, like gold in the hard days of traditional markets. Digital currency market still owns the same features despite more instability.