Bitcoin, Wash and ethereum are part of the cryptocurrency craze people cannot get enough of and Mike McGlone, a Bloomberg Word Commodity Strategist, has revealed where the market is heading next.
Examining on a Bloomberg podcast, Mr McGlone said: “The big problem with bitcoin is, in this gap, is it’s the first born but right now it’s really becoming the old dog.
“Now there’s just so much contest. It basically looks like AOL or Netscape in this space now.
“If you look at in actuality like some of the greater indices like the MBI 10 index, it’s up damn near 50 percent in the last, I hate to say what short period of ever, just the last few months and bitcoin is not.
Bitcoin and other cryptocurrencies poverty «adult supervision», McGlone said
“I think it’s because the market’s swopping, it’s realising bitcoin might store value but it’s not a medium of exchange.
“It’s too priceless and too difficult and all these new cryptos, baby next generations, are really starting to on ones way in its space.”
Mr McGlone revealed the next step for digital currencies was to be scrap of a cryptocurrency futures market with “adult supervision”.
He said: “To me, from a approaches standpoint, that is the next step.
“We have bitcoin futures, we give birth to S&P 500 futures. We need to focus on maybe getting some cryptocurrency prospective, index futures, a futures to track the entire index.
“I think the stock markets are looking to do that, they just need the proper index to do it and they’re looking despatch to it.
“But to me, that’s where the markets going that’s kind of the part of supplementing some adult supervision to this space.”
But McGlone warned that with as surplus 820 cryptocurrencies around the world, and the number growing daily, bitcoin is overlay major competition.
He said: “The biggest problem in the cryptos is the unlimited supply.
“Now bitcoin has meagre supply, we get that, but cryptos this year so far based on Coinmarket.com low-down, total amount of cryptos in the world have increased 700 this year, that’s as surplus a 12 year period.
“That’s the most since 2014 when they increased 500 and that’s the decisive time we had a dip in bitcoin, it dropped 58 percent.
“So the supply is unlimited and it’s not never-ending for gold, in fact it’s a bit going the other way.
“To me that’s the big issues is the supply’s parabolic and that should limit appraisal action.”
Bitcoin slipped 5.28 percent to $113,676.93 at 14:42 in London, according to CoinDesk.