Blockchain.com CEO Warns Crypto Destruction but projected Stronger Industry

More bitcoin destruction is coming in the short term, according to Peter Smith, CEO of top cryptocurrency exchange and wallet provider Blockchain.com, but he believes that in the long run, this type of destruction will lead to a stronger sector.

More pain is on the way for the cryptocurrency market, according to Smith, but crypto investors should remember to dollar-cost average into their positions to minimize heightened exposure to abrupt bouts of volatility.

“Creative destruction”

After the collapse of the Terra ecosystem, which saw LUNA fall from prominent crypto assets to almost nothing, and factors affecting stock markets such as inflation and a potential recession, cryptocurrency values have recently faced increased volatility.

In the immediate term, though, he expects further devastation as the space industry’s lesser initiatives fail.

We need to see “consolidation in both the market and the companies supplying the market,” according to Smith, who recently claimed that “creative destruction” makes a sector better in the long term.

ALSO READ – BSN Global To Roll Out Its Core International Project Soon

The CEO noted that “risks start to be exposed through the economy” in the coming weeks, especially for corporations, trading firms, and funds that haven’t been properly managing their risks.

Despite this, he remained a cryptocurrency bull, claiming that he has experienced four or five similar market cycles and that “every single time it’s been brutal pain on the way in but led to a stronger industry, more useful industry, and real fundamental growth over the next two to three years that follow.”

Su Zhu, the co-founder of cryptocurrency trading and venture capital firm Three Arrows Capital, recently stated that he believes Bitcoin ($BTC) is reentering an accumulation zone after the cryptocurrency’s price fell for the seventh week in a row, for the first time in its history.

Bitcoin has been displaying strength when contrasted to equities, according to the co-founder of the cryptocurrency hedge fund, at a time when Bank of America analysts stated that the flagship cryptocurrency has been failing as an inflation hedge due to its link with equities.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing