Just recently Bitcoin received a massive dip in the digital currency market where it lost a whopping $400 in 30 minutes. Many investors were shocked as the major crypto-currency experienced another major bump in its value. However, if the latest findings are any indication of the cryptocurrency’s future, then the investors might heave a sigh of relief.
The investment firm and hedge fund Pantera Capital’s co-CIO, Joey Krug believes that the cryptocurrency market could increase ten times over by 2020. Speaking in an interview with Bloomberg, he said that scalability improvements for Bitcoin (BTC) were essential to spark a shift in the deflated prices seen throughout this year.
The comments came days after new developments on the institutional trading side of Bitcoin markets, with Fidelity Investments revealing it was testing a regulated custody solution for investors and hedge funds. While reactions from finance figures such as Galaxy Digital’s Michael Novogratz were positive, the news failed to shift market sentiment or prices in Bitcoin.
Despite the recent dip in Bitcoin’s value, Krug thinks that the mainstream market is finally opening up to the acceptance of Bitcoin. In order to streamline cryptocurrency into the consumer market, an increase in transaction capacity is required. However, Krug believes that Bitcoin will never be able to reach or compete against the widely used payment services such as Visa or MasterCard. Developers are constantly working to expand the number of possible transactions that Bitcoin handle. Recently, the focus has been directed towards off-chain approaches i.e. outsourcing to a secondary chain such as Lightning Network.