Consensus Lab Partner: Bitcoin Can’t Get out of Bear Market but Crypto Assets Management will become Mainstream
[ChainDD report] February 11 (ChainDD) During ChainDD’s community event Who’s Foreteller, Ren Zheng, partner of Consensus Lab, a Chinese investment firm focuses on cryptocurrency and blockchain space, predicted that in 2019 Bitcoin price will still change as change of situations and development of supply and demand, trading at a range between $3000 to $6000. Assets management will remain the mainstream business of cryptocurrency field, and wealth management, cryptocurrency loan, over-the-counter (OTC) and other businesses will continue springing up.
Ren explained that his estimations are based on two assumptions: First, nowadays Bitcoin still haven’t evloved into a completely decentralized structure. Its holdings are concentrated, with the distinctive difference between groups of holders and non-holders. Since they are in certain age groups and in independent industry, Bitcoin’s holdings are not really decentralized; Second, blockchain’s outlook is uncertain while new rule of the cryptocurrency game (apart from initial coin offering (ICO)) is absent, so assets management will become the mainstream business this year.
Besides, Ren noted we are back to the era of Bitcoin related industries-oriented (prior to2017) due to the sellout of minor cryptocurrencies. The most lucrative sector in financial field is non-banking financial institutions, namely, firms that engaged in insurance, trust and management of securities. Profits of such companies depend on amount of funds they can attract. And assets management, cryptocurrency lending and OTC all belong to such category of financial sector. Therefore, they can produce earnings in bear market.
In conclusion, Ren expected Bitcoin and other major cryptocurrencies will have sort of rally even they can’t get out of bear market. And the most popular business this year will be assets management.