- Voorhees, the founder and CEO of ShapeShift.io, sat down with Bloomberg to discuss the bull run.
- He also identified the current use-cases of cryptocurrencies.
The founder and CEO of ShapeShift.io, Erik Voorhees, shared his views on crypto assets during a recent interview with Bloomberg. Voorhees noted that the crypto market has “four or five bubbles,” which have resulted in extreme price fluctuations and a majority of the price movement are cyclical. He stated:
“People wait until they feel like the bottom is in…and [wait until]they feel like the bear market is over…and then they feel comfortable moving back into crypto. That’s probably the biggest reason [behind the recent crypto market rally.]Often, these things are a confluence of many different individuals making their own decisions.”
When asked about the speculative trading rife in the crypto-market which causes bubbles, Voorhees said:
“There have to be bubbles in crypto because [it]is taking over the world. And, it’s not going to advance 5% a month without end. If it did that, then people would start buying it up and frontrunning it, and turning it into a bubble. There’s no way to go from a zero dollar asset to one that’s worth trillions without massive speculation and massive volatility in cyclical bubbles.”
When asked to comment on the current use cases for cryptocurrencies, Voorhees pointed out the following:
- Cryptocurrencies have found great utility in countries like Venezuela, which are going through severe hyperinflation.
- Remittance payments using crypto assets are also on the rise.
However, Voorhees did concede that the cryptos are still mainly being used in speculative trading.