Bitcoin’s price has plunged by around $25billion in the past 24 hours and the cryptocurrency seems set to suffer more disappointing days on the markets.
But Ran Neuner, CEO of OnChain Capital, told CNBC bitcoin will come back to hit the high-value levels reached in 2017.
He said: “I’ve been tracking bitcoin since last year and it went up from $17,500 up to $20,000 in anticipation of the futures.
“The futures were kind of an un-event. The event was the momentum play when people started to get into cryptocurrencies.
“So you had these people, these retail investors, getting into cryptocurrency for possibly the wrong reasons.
“They got into it because of the fear of missing out, they got into it because they wanted to make the money without understanding the technology. And the market went up.
“But then the market started to come down and everyone who didn’t understand the technology turned around and said ‘hold on, why are we actually back here?’
“I’m expecting the market to hover here for a little bit, a little bit nervous. And then I’m expecting some kind of something to bring up the green candle and that will start the momentum back up again.
“Bitcoin is a store of value but it’s a new store of value and there’s not massive market adoption yet. And as we get mass market adoption then we can expect for it to become the universal store of value.
The cryptocurrency expert claimed the only reason bitcoin is yet to become the universal store of value it is set to be, is because the technology behind cryptocurrencies is not ready yet.
He said: “I always say, if we were going out to run a marathon, we’ve just parked our car and picked up the goody bag, we haven’t even got to the start line of cryptocurrency.
“The technology isn’t ready to go mainstream yet. It’s very hard to open an account, it’s unscalable.
“So, yes there is a new digital gold, a new digital store of value, I think bitcoin is the store of value, but the game hasn’t even started yet.”
According to Coindesk at 10:54 pm on February 2, bitcoin price is $8,762.15, while its competitor Ripple is valued at $0.87.