Bitcoin [BTC] is significantly undervalued right now, says Adamant Capital’s Tuur Demeester
The multitude of research on Bitcoin [BTC]
and its characteristics have made a mark on the cryptoverse, with several proponents predicting the world’s largest cryptocurrency’s rise and fall. One such research that grabbed headlines recently was the one published by Tuur Demeester, Founding Partner at Adamant Capital, which addressed the properties of the coin and the sentiments surrounding it.
Speaking to Peter McCormack, Demeester touched upon one area of the research ie. Bitcoin being significantly undervalued right now. The Adamant Capital founder stated that Bitcoin has always been used as a performance benchmark and that it can be a lot more than just a saving grace from the mainstream financial ecosystem. Speaking about BTC being undervalued,
Demeester claimed,
“If you look at the blockchain and the Bitcoin that is being moved and then compare it to the current price, you will get something that is called the unrealized profit and loss. There is an assumption that when BTC is moved it is sold, and this event is called a value realization event. It is just that the owner had the opportunity to liquidate their Bitcoin and that is why they took it.”
Tuur Demeester further added that Bitcoin is a psychological market, with its value fluctuating depending on investor sentiments. He pointed out that the data aggregated for investors paint a picture if the market is in the green or in the red, which in turn affects market sentiment.
According to him,
“We have seen similar patterns during late 2013 and early 2014 where there was a lot of unrealized profits which again happened during the summer of 2017. The investor psychology was more inclined towards greed and when the bear market sets in, the positive sentiment obviously decreases. Once it is in the red, retail investors walk away which is what happened last November when BTC drooped from $6000 to almost $3000.”
Demeester was in the news recently after he opined that Bitcoin was slowly maturing into full-fledged digital gold and reserve asset. He compared the rise of BTC to money, stating that it was a result of evolution and not a sudden apparition.
Article Produced By
Akash Anand
Engineering graduate, crypto head and Arsenal fan. Is fascinated by technology and all its marvels. Strictly against pineapple on pizza.
TP
