{"id":4634,"date":"2024-09-06T14:54:46","date_gmt":"2024-09-06T14:54:46","guid":{"rendered":"https:\/\/digitalcoinprice.com\/blog\/?p=4634"},"modified":"2024-10-30T14:55:19","modified_gmt":"2024-10-30T14:55:19","slug":"neil-bergquist-on-what-investors","status":"publish","type":"post","link":"https:\/\/digitalcoinprice.com\/blog\/neil-bergquist-on-what-investors","title":{"rendered":"Neil Bergquist on What Investors May Not Know About Crypto Volatility"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-flat ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Content<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #223c50;color:#223c50\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #223c50;color:#223c50\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/digitalcoinprice.com\/blog\/neil-bergquist-on-what-investors\/#Bitcoins_Long-Term_Trend_Features_Higher_Yearly_Lows\" title=\"Bitcoin\u2019s Long-Term Trend Features Higher Yearly Lows\">Bitcoin\u2019s Long-Term Trend Features Higher Yearly Lows<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/digitalcoinprice.com\/blog\/neil-bergquist-on-what-investors\/#What_Drives_Bitcoin_Prices\" title=\"What Drives Bitcoin Prices?\">What Drives Bitcoin Prices?<\/a><\/li><\/ul><\/nav><\/div>\n<p><span style=\"font-weight: 400;\">The price swings of cryptocurrencies like bitcoin have captivated investors and onlookers alike.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In a recent interview, Neil Bergquist,<\/span><a href=\"https:\/\/www.crunchbase.com\/person\/neil-bergquist\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">founder and CEO<\/span><\/a><span style=\"font-weight: 400;\"> of crypto exchange Coinme, discussed crypto price movements from a perspective that may surprise casual observers. While acknowledging crypto&#8217;s reputation for price swings, he noted that a longer-term view reveals a different pattern.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;It&#8217;s volatile, but what&#8217;s interesting is if you zoom back, yes, it goes up and down, but when it goes into a down cycle, into a trough, its low is higher than its previous low,&#8221;<\/span><a href=\"https:\/\/cryptonews.net\/news\/bitcoin\/29028085\/\" rel=\"nofollow noopener\" target=\"_blank\"> <span style=\"font-weight: 400;\">Bergquist explains<\/span><\/a><span style=\"font-weight: 400;\">. &#8220;If you look at the lowest price of bitcoin in any given year, it&#8217;s almost always higher than the low of the prior year.&#8221;<\/span><\/p>\n<h2><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoins_Long-Term_Trend_Features_Higher_Yearly_Lows\"><\/span>Bitcoin\u2019s Long-Term Trend Features Higher Yearly Lows<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">This more-sustained &#8220;higher lows&#8221; phenomenon can sometimes be overlooked in breathless media coverage of crypto&#8217;s latest price spikes or crashes. Yet it points to a more nuanced reality of bitcoin&#8217;s price trajectory over its now nearly 15-year history.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A look at bitcoin&#8217;s<\/span><a href=\"https:\/\/www.bankrate.com\/investing\/bitcoin-price-history\/\" rel=\"nofollow noopener\" target=\"_blank\"> <span style=\"font-weight: 400;\">approximate yearly lows<\/span><\/a><span style=\"font-weight: 400;\"> over the last decade shows a clear upward trend:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">2015: $200<\/span><\/p>\n<p><span style=\"font-weight: 400;\">2016: $350<\/span><\/p>\n<p><span style=\"font-weight: 400;\">2017: $800<\/span><\/p>\n<p><span style=\"font-weight: 400;\">2018: $3,200<\/span><\/p>\n<p><span style=\"font-weight: 400;\">2019: $3,300<\/span><\/p>\n<p><span style=\"font-weight: 400;\">2020: $3,800<\/span><\/p>\n<p><span style=\"font-weight: 400;\">2021: $29,000<\/span><\/p>\n<p><span style=\"font-weight: 400;\">2022: $15,600<\/span><\/p>\n<p><span style=\"font-weight: 400;\">2023: $16,500<\/span><\/p>\n<p><span style=\"font-weight: 400;\">2024: $40,000<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While the drops can be severe \u2014 as evidenced by the plunge from 2021 to 2022 \u2014 the long-term direction has been decisively upward over the past decade.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;That&#8217;s why you don&#8217;t really want to make impulsive decisions on the volatility of the day or the week,\u201d says Bergquist. \u201cThat&#8217;s why it&#8217;s seen more as a long-term store of value, and having that long-term perspective is important.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This view of bitcoin as more than a short-term trading vehicle is gaining traction among some institutional investors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201c[Exchange traded funds], BlackRock and sovereign wealth funds are now holding bitcoin as a store of value. That&#8217;s a huge trend,\u201d says Bergquist.<\/span><\/p>\n<h3><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"What_Drives_Bitcoin_Prices\"><\/span>What Drives Bitcoin Prices?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">But what drives bitcoin&#8217;s price appreciation over time, despite its volatility? Bergquist argues that, in large part, it comes down to a<\/span><a href=\"https:\/\/www.coinspeaker.com\/coinme-ceo-inflation-bitcoin-dollars\/\" rel=\"nofollow noopener\" target=\"_blank\"> <span style=\"font-weight: 400;\">fixed supply in an inflationary world<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;The U.S. government can print more dollars, and that increases the supply and decreases the value of the dollars already in circulation, but this process often increases the price of finite assets like bitcoin,&#8221; he says. \u201cThere will never be more than 21 million bitcoin ever. It has a capped supply, and no one can change that.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This hard cap on bitcoin&#8217;s total supply is baked into its code. Every four years, the rate at which new bitcoins are created is cut in half in an event known as \u201chalving.&#8221; This systematic reduction in new supply, combined with growing demand, has historically led to price increases in the years following each halving.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bergquist contrasts this with the inflationary nature of fiat currencies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;What&#8217;s the hidden cost of living in dollars? Inflation. Your bank account balance in dollars is worth less over time than if you were to live in bitcoin.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">He acknowledges that bitcoin hasn&#8217;t yet reached the goal of a widespread peer-to-peer electronic cash system. However, he sees potential in layer-2 solutions \u2014 which involve building digital infrastructure on an existing blockchain that allows for off-chain cryptocurrency exchanges \u2014 to enable faster, cheaper transactions that could make bitcoin more viable for everyday payments. An example of a layer-2 solution is the Lightning Network that allows for instant blockchain payments.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;There have been a lot of protocols and layer-2s on different chains that have solved the network congestion issues that might exist, or the technical limitations of the layer-1 blockchain, by pushing it to a side chain, which leads to faster and cheaper payments,&#8221; Bergquist explains.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bergquist sees the broader crypto ecosystem as enabling a multicurrency future where people have<\/span><a href=\"https:\/\/coindoo.com\/ceo-neil-bergquist-says-consumers-may-choose-bitcoin-atms-over-traditional-banking-options\/\" rel=\"nofollow noopener\" target=\"_blank\"> <span style=\"font-weight: 400;\">more choice in the money they use<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;People can now live a multicurrency life. People can now choose the money that they want to use,\u201d he says. \u201cThat&#8217;s a huge concept. That&#8217;s a huge new idea.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For now, though, much work remains to be done in educating the public about cryptocurrencies and making them more accessible and user-friendly. Bergquist sees this as a<\/span><a href=\"https:\/\/www.financestrategists.com\/founder-spotlight\/interview-with-neil-bergquist-co-founder-and-ceo-of-coinme\/\" rel=\"nofollow noopener\" target=\"_blank\"> <span style=\"font-weight: 400;\">key mission for Coinme<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;I think right now, where we&#8217;re at in this day and era, it is really an education problem,\u201d he says. \u201cThe more we can educate people on how crypto can solve problems that exist with our current monetary system and financial service providers, the better.&#8221;<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The price swings of cryptocurrencies like bitcoin have captivated investors and onlookers alike. In a recent interview, Neil Bergquist, founder and CEO of crypto exchange Coinme, discussed crypto price movements from a perspective that may surprise casual observers. While acknowledging crypto&#8217;s reputation for price swings, he noted that a longer-term view reveals a different pattern. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4293,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[40],"tags":[],"class_list":["post-4634","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-learn"],"_links":{"self":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/4634","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/comments?post=4634"}],"version-history":[{"count":1,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/4634\/revisions"}],"predecessor-version":[{"id":4635,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/4634\/revisions\/4635"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/media\/4293"}],"wp:attachment":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/media?parent=4634"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/categories?post=4634"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/tags?post=4634"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}