While the crypto economy has tumbled in value during the last two weeks, the managing partner at Multicoin Capital, Kyle Samani, recently shared his views on why he thinks the “next bear market will not be like the last one.” In fact, Samani remarks that there may not even be “a bear market at all.”
Multicoin Capital Executive Claims the ‘Next Bear Market Will Not Be Like the Last One’
One thing is for sure, cryptocurrency investors are fearful of a full-on bear market like the past two crypto winters that shaved digital currency prices by more than 80% in value after each top. Currently, anywhere between 25% to 30% of the value since the crypto price highs on November 10, have been lost and bearish sentiment has put pressure on the crypto economy as a whole. However, despite the 30% drawdown in market values, Multicoin Capital’s managing partner Kyle Samani shared his thoughts in a recent Twitter thread published two days ago.
“Why the next bear market will not be like the last one,” Samani said. “And in fact, we may not have a bear market at all. Or we may have half a bear market, depending on your perspective.” Samani further says that broadly speaking, there are two types of people in crypto: “money crypto” and “tech crypto.” In recent times, or since 2017, Samani claims that the tech crypto group has dominated. “Since 2017, tech crypto has come to dominate the zeitgeist,” Samani stressed.
Samani remarked that these days, it is clearly evident that tech crypto dominates and he says “there are still lots of people who just think about BTC as an inflation hedge, but they represent an increasingly small [percentage] of press, social media, conference speaking, etc.” The Multicoin Capital executive added:
Money crypto people think primarily about interest rates, the politicization of central banks, etc. Tech people care about building. Inevitably, politicians/CBs will do stuff that is bad for BTC as an inflation hedge. Whether that’s banning it (or trying to), or just raising rates, or whatever. There is a natural ebb and flow to the actions of these institutions, and BTC-USD will naturally respond to it.
Samani Insists a Vast Amount of Capital out There That ‘Will Never Believe in Bitcoin’ — ‘Tech Money Doesn’t Care About Macro’
Samani further stated that tech people don’t care about those types of things and that “they just want to build cool new things.” If bitcoin dropped by 50% because of government enforcements, Samani claims tech people will continue to build and investors will “invest in tech crypto.”
“It’s possible that crypto is still a few years too early from truly breaking into the mainstream,” Samani noted on Sunday. “But I think at this point, that no longer matters. The train has left the station: all of the tech builders and investors have underwritten…
Read More: Multicoin Capital Exec Says There ‘May Not Be a Crypto Bear Market at All,’