From $20000 at the end of 2017, to $3700 now, bitcoin falls again, the domestic and foreign currency analysts and industry heavyweights encryption, with analysis of reasons of bitcoin crash, hard BCH bifurcation, American SEC up ICO, old money Hailun, conspiracy theory etc..
The famous Silicon Valley venture capitalist Andrew Romans from a micro perspective to analyze why the encryption market in decline, and stood in a venture capital experts point to predict the trend of investment in 2019 encryption market.
In 2017 investors – particularly in the fourth quarter, investors want to buy bitcoin and etheric coins, the only purpose is to convert bitcoins into specific ICO tokens they want to invest in.
Bitcoin currency and etheric buyers do not actually want to have bitcoin currency or ethernet. They just want to buy ICO tokens, but they need to buy bitcoin currency and Ethernet as the short path to obtain what they want in the end.
These money holders do not want to sell their coins and etheric coins, they are waiting for prices, they are also bitcoin believers and etheric fang. Therefore, in a “business world”, bitcoin prices rose.
Then, those who completed the ICOs venture company into whale, they begin to polymerize into a small group, in December and January to sell their tokens, which will be a huge demand for dynamic bitcoin currency and Ethernet transfer to all sellers and etheric bitcoin currency. In the new year after the hangover subsides, startups need to convert their assets to pay for encryption of legal tender, to the engineer and support their startups.
Then there is a run on the bank panic, 2017 Q3 and Q4 US regulators because of the pressure of ICO suspended in early 2018. After a stop or a sharp slowdown in ICO. The new token issuer began to accept the legal tender without through the etheric coins, which kills more demand, leaving only the seller and hawker, and no buyers.
In the “business world”, the market dilemma. An interesting dynamic of the current market is all encrypted currency prices are highly correlated with each other. Just look at the CoinMarketCap on any token price, you will find there a perfect correlation between the majority of tokens. Bitcoin currency moves up and down together and etheric, most of the other tokens in the same way related.
The market should not be like this, but if there is no bank of these start-ups for analysis and reporting, like apple, Amazon, Microsoft and other companies do, now is the case. Therefore, bitcoin can raise or lower the price of other tokens, but now it seems that gravity works in two directions.
In 2018, there are also some things developed. Obviously, all these funded ICO was not achieved by the real rich technical experience angel or venture capitalists, they are not really want to invest in your hand. Previously, all these tokens with bitcoin and etheric coin prices, but now instead of drag them. They are related to each other, fall bitcoin currency and other mainstream currency and Ethernet is making “encryption” ship sank.
And what will happen is that all these vulnerable startups will eventually be eliminated, leaving some decent, giant companies better market performance. Today, South East Asia and around the world retail investors no longer gambling, no longer to the nearest ICO throwing cash, even to some block chain projects, but not more than the amount of the fourth quarter of 2017. Institutional investors and investment market in the past 80% encryption 20% retail investors. And from the current market, the 80% is institutional investors.
Andrew believes that if Pantera and 7BC.VC like a16z, Capital such a strong brand of venture capital venture in the level of due diligence, from its extensive investment channels for investment in start-ups, retail investors will be willing to invest, with investment in wind in accordance with local jurisdictions of the securities law.
It is time for the experienced Vc firm to raise the real risk investment funds, these teams are eligible for proper due diligence, to provide funding for the best team, and help the company through portfolio diversification and portfolio management, execution and investor risk. We have seen the return of equity financing reason — not just a token. Investors now have stocks and tokens. Some of the “pure ICO game” need only tokens, but for the real value of the project, only conducted due diligence, really old, investors can pay.
The new company will be funded in 2019, and in 2019, 2020 and 2021, the average listed than similar companies in 2017 is much better, may lead to a rebound in the market. Experienced entrepreneurs by venture capital support is now committed to block chain start-ups, this means that the number of the management team has gone beyond the original bitcoin anarchist.
Bitcoin itself is elastic, it through many “Mentougou incident” and numerous under periodic survival that bitcoin is long-term curve upward and to the right. In the end the sale of ICO and notorious repute tokens disappeared, the market will become more active. Many attempts to ICO managers think BTC and ETH will only be not enough money for encryption under the condition of rising currency. They not only have the business risk, but also increases the foreign exchange risk foolishly.
Therefore, the good news is that these vulnerable, should never be funded startups will be faster than expected to run out of cash, because their currencies in the currency conversion for encryption, as no value and they completed financing ideas. At present, the erosion of these tokens weaken the market will drive the market rose.
Andrew also predicted that we will see some killer startups rise and generate large-scale application scenarios, which will enable users to enter the mainstream of traditional encryption world, which will enhance the traffic encryption market. Some video games may also be because the encryption currency is not the same, such as “angry birds”, may promote the use of tokens. I want to see anyone else thought of things, such as Skype, everyone began to use, it will attract a large number of population into the encrypted world, because the value only in the world of encryption.
All enterprises must be transferred to the block chain, so no one is able to tamper with the number of sales volume or who get paid. All business, government and health care data should be placed in the block chain. Soon, if not signed a commercial agreement and trust the other party to tell you how many widgets in the sales China, America or Africa, it will not be accepted.
Once these commercial transactions or voting record in the block chain, no one can tamper with the data, all parties can trust each other. So, the market will rebound sharply and the long-term upward trend and right.
2019 is an excellent time to venture investment fund or investment venture investment company to block chain chain block as the focus, the Vc firm has a strong entrepreneurial experience, the investment team in achieving the best IRR risk investment performance and cash performance aspects of experience.