Barry Silbert, CEO and founder of Digital Currency Group and Grayscale Investments, says the majority of cryptocurrencies will eventually be worthless. However, he points out that Bitcoin remains the leading crypto despite the bear market that has affected prices in recent months.
Most digital tokens will go to zero
In an interview with CNBC, Silbert reveals that he does not believe in the vast majority of digital tokens and that most of them will go to zero. According to CoinMarketCap.com, the cryptocurrency market reached a record 800 billion USD early last year, with Bitcoin accounting for about 50 percent of that.
The rise in the Bitcoin price has helped the ICO market thrive last year, but most projects either failed or turned out to be frauds. Silbert believes, “Almost every ICO was just an attempt to raise money, but there was no use for the underlying token. The vast majority of what’s out there will be eliminated.” The elimination has started already, with regulators all over the world cracking down on the fundraising method, a move that Silbert believes is very good for the crypto space.
Silbert admits that he is as bullish as ever. As an early investor, he has experienced multiple price plunges, with each of them followed by full recovery and a bull run. Over the past decade, Bitcoin has been through three bear markets, and Silbert is convinced, a bull run will come after the current bear market ends.
In Silbert’s opinion, “The high degree of interest from institutional investors is a sign that Bitcoin is here for the long haul.” As sentiment changes, Silbert predicts that the Bitcoin price will recover quickly. “There are certainly institutional investors who have provided money, and many others are considering it. So far, they wanted to make sure they do not catch a falling knife.”
His company, Digital Currency Group, has made the most active seed investments in the crypto sector and wants to continue investing in worthwhile projects. The company currently owns and operates Bitcoin brokerage firm Genesis Trading, and the largest digital currency asset management firm, Grayscale Investments.
Bitcoin is the digital gold
There have been talks about Bitcoin replacing gold as a safe haven asset, and Silbert believes Bitcoin has already become the digital gold: “As far as I’m concerned, Bitcoin has won the race for digital gold.”
The younger generation of investors does not see gold as the same, uncorrelated, safe haven as their parents. Silbert cites Accenture’s statistics on the investor call, which shows that 30 trillion USD of baby boomer wealth is going to be handed down over the next two decades. Part of it is currently in gold, and Silver predicts that the younger generation would prefer to store it in bitcoins instead.
Silbert adds: “I’m convinced that whatever money is in gold is not going to stay in gold. I’m highly confident that some of whatever gets handed down to millennials will go into Bitcoin.”