Co-founder of Network Effects Media, senior advisor for MIT’s Digital Currency Initiative,and a long-time crypto industry insider Michael Casey, said late last week during an interview with Cheddar that the valuation of digital assets is putting the entire industry in jeopardy.
Casey explained that the creation of cryptocurrencies and blockchaintechnology was specifically meant to move away from centralized third-party entities.
However, the way these assets are being valued remains close to traditional market operations, which could spell ruin for the cryptocurrency revolution if it continues.
One important observation from Casey is that based on the way cryptocurrencies are being valued in fiat currencies, most participants in the cryptocurrency markets these days are looking for an exit into fiat.
For such investors, cryptocurrencies have little to do withholding for the long term, and everything to do with making a quick profit and getting back into fiat currency.
This has misaligned the function of blockchain and cryptocurrencies since investors are only looking for profit, not trying to find a better way that eliminates the need for the traditional centralized powers that be.
Note: This article was first published by InvestinBlockchain.
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