Cryptocurrency

Reddit Co-founder: It Is Spring For Crypto Innovation, Winters Are Good For The Industry

Reddit Co-founder: It Is Spring For Crypto Innovation, Winters Are Good For The Industry

Investors should not be scared about the brutal cryptocurrency winter because it is good for the long-term health of the industry. The winters provide an opportunity for the industry to grow.

Winters are great for the crypto industry

During a recent interview with YahooFinance, Alexis Ohanian explained that the industry grows during crypto winters.He is the co-founder of famous Reddit. At age 23, he became a multi-millionairewhen he and his partner sold the site to Conde Nast. He later co-foundedInitialized Capital, which finds and develops software companies, among themCoinbase and Instacart. He is the co-founder of venture capital firmInitialized Capital.

Almost a year ago, Ohanian, like manyother industry experts, predicted the prices for ethereum and bitcoin. He stated that thebiggest crypto would hit $20,000 and ethereum $15,000 at the end of 2018. Eventhough his prediction did not play out, he is still optimistic. About six monthsago, he revealed that he was particularly optimistic about cryptocurrencieslike Bitcoin, Ethereum and Ripple.

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While much has happened during thepast six months, he clarified to Yahoo Finance that we without a doubt are in adeep crypto winter. However, this is the time when the infrastructure getsbuilt. He said:

“Investors should think about cryptocurrencies long-term. Speculators have fled, and the people who are now building on crypto are true believers. They will build the infrastructure that it’s going to take to make this happen.”

What is next for cryptos?

Despite the crypto winter, he saysthat it is the spring of crypto innovation. He argues that people who remain inthe industry are die-hard enthusiasts, not fair-weather speculators.

“This is the Crypto Winter, no doubt,” Ohanian told Yahoo. “But a friend of mine, Brian Armstrong, who’s the CEO of Coinbase said, ‘This is the spring of crypto innovation.’ What he means is, ‘Yes, the prices are depressed. The speculators have fled, and that’s great.’ Because the people who are now building on crypto are true believers, they’re building the infrastructure that it’s going to take to make this happen.”

Ohanian is not alone in this belief;Mike Novogratz said a couple of daysago that institutions wait for the infrastructure to be built before entering.What we see now is that retail investors sell and institutions buy the cheapcryptocurrencies.

Alexis fights naysayers and reveals that JP Morgan jumping onto cryptocurrencies indicates that there is real innovation that is happening now that all the wild speculation is gone. That is a good thing according to the Reddit co-founder. Ohanian says the prolonged bear market is painful for cryptocurrency investors, but they should, like all traditional investors, approach bitcoin with a long-term mindset.

Image Source: “Flickr”

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