Bitcoin Market Structure To Improve Says Gabor Gurbacs

Gabor Gurbacs, the chief digital asset strategist at VanEck, a New York-based investment firm, has predicted that the crypto market will have a slow and steady rise in 2019.

This statement was made along with the explanation that more investors would feel comfortable investing in digital assets. He also emphasized the importance of custody and surveillance programs, claiming that they will bring due diligence to the industry which is very much needed.

In light of the recent hacks of trading platforms and entire crypto networks, this is likely a valid argument.

Institutional investment is one of the most important factors in crypto reaching global acceptance.

This is why there is so much effort being put into securing an ETF for a crypto offering. Speaking of ETFs, Gurbacs agrees that ETFs and futures will be the driving force behind getting institutional support.

“Investors do not accept cut-corners in the digital asset market structure. They expect a lot of custodians to come to the market,” Gurbac said. “They expect their assets to be safe which means non-nefarious activities should be toned down by an increase in surveillance. And frankly, most of the investors want to invest in assets conveniently – with the systems they already understand.”

The Bitcoin crash of late-2018 has created some very interesting ripple effects in the market. Some investors are frustrated by the fact that the market is yet to recover over a month into the crash.

“Bitcoin continues to struggle and is in the mid-$3k’s. If prices were oversold, we would have bounced by now. This lethargic base tells us that demand is still incredibly weak and this selloff still hasn’t found a bottom,” Jani Ziedens of the Cracked Market blog said.

This effect isn’t limited to investors. Many companies, particularly those that specialized in crypto mining, have been forced to close down some of their offices, lay off staff and some have shut down completely.

More importantly, it revealed a key market flaw, which is that many companies, even those worth millions, based their survival entirely on cryptocurrency price.

As a result, many companies have begun branching out. BitFury, for example, specializes in crypto mining manufacturing but is now expanding by creating an open source platform for music distribution.

More and more companies are branching out and exploring their options and should Gurbac’s prediction of slow and steady market growth be correct, we could be looking at a more diverse and innovative crypto market by the end of the year.

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