Blockchain venture capitalist Spencer Bogart says Bitcoin is still a buy despite its continued losses.
The growing number of use cases for bitcoin is proof that the cryptocurrency is finally being institutionalized.
“Every major bank is trying to do something in the space,” Bogart, a partner at Blockchain Capital, said in an interview with CNBC on Friday.
“Either they’re going to be offering bitcoin to their clients, they’re working on a custody platform or they’re opening up a trading desk,” Bogart said. “A deeper institutionalization of bitcoin is overall positive,” he added.
Still, bitcoin has seen better days. After peaking almost $20,000 in December last year, bitcoin has dropped more than 50% of its price since the start of the year. The coin fell yet again on Thursday, amid rumors if increased regulatory scrutiny, this time below the $8,000 level. On Friday, bitcoin traded around $7,400.
Despite this, Bogart says the coin is still a buy. As a matter of fact, it is only coin traders should be buying as it becomes more and more mainstream.
According to Bogart, most other forms of cryptocurrency “are over-promising and under-delivering”. He added that there are only a few that are excelling at their use-cases, bitcoin being one of them.
Bogart suggested selling coins like TRON, IOTA, NEO and Cardano.
“A lot of those tokens are overvalued,” he said. “They could be go up significantly, but they also have significant headwind, “he added.
Bogart describes Ethereum, Ripple, Bitcoin Cash and EOS as “neutral” and that investors should hold for now.
Bitcoin said he’s particularly wary with Ethereum, which he says has a lot of overhang due to numerous initial coin offerings (ICOs) built on top of the Ethereum blockchain. He explains that if the ICOs don’t work out, it could be bad news for the platform it was built on.
He also predicted that bitcoin should “at least” rally above $10,000 by the end of the year. However, he also acknowledged the possibility of the coin facing some headwind.
“But when I look out over the next year, two years, I mean the story is very much materializing,” he said talking about bitcoin increasing its value.
“Could bitcoin trade lower? Certainly,” Bogart said. “But do I think it will be higher a year from now? Absolutely,” he added.