In an interview with Bloomberg Joey Krug the co-chief investment officer of Pantera Capital, said that he is expecting the next Bitcoin bull run to take the cryptocurrency market cap to 100% above its present valuation. He also mentioned that the upcoming rise could fuel the cryptocurrency market cap to an excess of $2 trillion. Krug said, “If you look at the next bull run, I think the crypto space overall could hit 10x from here.”
Krug further said that he believes the current market is waiting for a solid adaptation to catalyze the bull run. Krug said for it to happen, networks of cryptocurrency will be required to achieve heightened stability because in the current scenario of cryptocurrency, blockchain is like the internet before dial-up.
He further commented, “If you look at the internet, it’s easy to say, ‘Well, you just create an app, get some users, and then you solve the scalability problems.’ But these are all markets, and so if you don’t have scalability, you don’t have market makers, and so you don’t have liquidity.”
The LN (Lightning Network) is currently on beta and is a layer two protocol that functions above Bitcoin. By the use of networks and inbuilt scripting language, users are able to manipulate funds “off-chain” into the LN payment channel. It is where such transactions do not require even a minute validation and simultaneously can be processed in no time at almost no cost.
Krug said that these technologies along with the ones on other blockchains, are yet to be prepared for primetime, and he expects some cryptocurrency network to achieve the scale of Visa/Mastercard in a couple of years. He also mentioned that it does not mean that the bear market will wait for that long a time.
In the meanwhile, Krug mentioned that he believes the cryptocurrency market has hit the bottom and he will stay range-bound till the next catalyst presents itself.