Marc Kenigsberg, CEO of Jamworx thinks the recent Bitcoin price dip is a minor retreat from the highs of 2017.
According to Kenigsberg, there are two primary factors reducing the price at the moment:
"Firstly, some of the speculative money that has been invested in the last few months by outside investors is being taken off the table as profits. Secondly, the market is still reacting to Bitmain’s threat tactics and the risk of a possible hard fork as retaliation for UASF. Ultimately Bitcoin is still up almost 150 percent YTD so I’m not concerned at all. Clearly, the fundamentals are strong and the demand is still increasing."
2013 revisited?
In June alone, the ecosystem experienced four brief market crunches which Cointelegraph nicknamed the Crypto Massacre. As this report was being filed, the markets were submerged in another sea of scarlet read. When Cointelegraph asked Marc whether the situation can lead to a revisit of 2013, where Bitcoin price fell dramatically, he disagreed entirely:
"The price increase in 2013 was driven by the use of Bitcoin in darknet marketplaces like Silk Road and the majority of money that was invested was done so without an understanding of what Bitcoin is or how it could be used. The Bitcoin ecosystem today is substantially larger and more mature as a means of payment than ever before."
Time to buy more?
Marc also holds that merchant adoption is at an all-time high and the ecosystem is seeing record amounts of daily transactions.
Moreover, there is widespread mainstream interest in Bitcoin as a means of payment and there is a basic understanding of what it can do.
"Simply put, more merchants accept it, more people use it and more people want it than ever before. The price increase is a correction of what was an undervalued price of Bitcoin," he maintained.
He urged the community to hold their Bitcoin and not to sell since the Bitcoin price will definitely go up soon.
"As the first mover in the cryptocurrency space and the only coin that has an intended and proven use case as a Store of Value, Bitcoin is a clear hold for me," the publisher of Bitcoin Chaser remarked.
He further suggested now is the time to buy more for anyone that can. From his point of view, a $2,500 price tag may seem expensive to some today, but it’s going to look like a bargain a year from now.
Speculation pushed price
Marc dissented the last Bitcoin price rally was influenced by speculation and explain that there is speculation in any currency market but that was not the main factor of the price increase. He argued that the price increase has been the catalyst for the speculation and not the other way around.
He says:
"Since the Bitcoin Blockchain is transparent we can see the actual state of the network and its transactions. And it’s definitely growing. Despite the competition from other cryptocurrencies and the internal scaling debate issues, Bitcoin is being used more today by more people than it was a year ago. That’s network growth. Google searches for Bitcoin are at an all-time high and country after country is adding mass merchant support for payments in Bitcoin."
He believes the world is starting to understand and accept Bitcoin as a successful payment method and that is what is driving the price up.