According to Peter Smith, CEO and wallet provider Blockchain.com, “more bitcoin destruction is on the way, but he believes that in the long run, this sort of devastation will lead to a stronger sector.” The crypto CEO remarked in an interview on May 19 that investors can expect to hang onto their crypto holdings for some time as the market matures. Smith stated:
“And you need to be prepared to hold it for quite some time. Because we’re still in the nascent period of building this whole finance system out.”
Smith also noted that the market is experiencing “washout of risk and leverage across the entire global market system” that has affected the crypto space.
The recent Terra ecosystem collapse has resulted in cryptocurrency prices decline as the market saw LUNA going from a prominent crypto asset to almost worthless. According to Smith, “more pain is on the way for the cryptocurrency industry, but crypto investors should take it as a lesson that it’s critical to dollar-cost average into their positions to prevent heightened exposure to abrupt bouts of volatility.”
Blockchain.com CEO noted that he thinks that in the next few weeks “risks start to be exposed through the economy,” including for companies, trading firms, and funds that haven’t been appropriately managing their risks.
Nonetheless, he remained a bitcoin bull, citing four or five comparable market cycles and remarking that “every single time it’s been brutal pain on the way in but led to a stronger industry, and more useful industry, and real fundamental growth over the next two to three years that follow.”
Su Zhu, co-founder of cryptocurrency trading and venture capital business Three Arrows Capital, recently claimed that he sees some evidence that Bitcoin (BTC) is reentering an accumulation zone after the cryptocurrency’s price plummeted for the first time in its history for seven weeks in a row.
The co-founder of the crypto hedge fund also stated that Bitcoin has been doing well in comparison to stocks, at a time when Bank of America analysts stated that the flagship crypto has been failing as an inflation hedge because of its link with equities.
Read more:
- Blockchain.com secures $100 million in liquidity from Truefi’s single-borrower pool
- Blockchain.com in talks with American banks about IPO 2022 plans
![Pinterest](https://pinterest.com/pin/create/button/?url=https://cryptoshrypto.com/blockchain-com-ceo-crypto-holding/&media=https://cryptoshrypto.com/wp-content/uploads/2022/05/7-2-2.jpg&description=According to Peter Smith, CEO of Blockchain.com, "creative destruction" is eventually beneficial in stabilising the crypto sector.){kind=link}