Crypto investors should not hope for a quick recovery of the bitcoin rate. It will be able to return to peak levels no earlier than in 10 years, a well-known developer believes.

Growth Needs Institutional Money

It will take 10-11 years for bitcoin to rise again to $20,000, believes Cardano’s (ADA) founder, Charles Hoskinson. Bitcoin could grow but it needs millions of persons around the globe to start using it.

According to Hoskinson, the arrival of institutional investors may be the driver of the bitcoin growth, but those need a clear understanding of what they will get in return.

“Institutional investors are pretty picky. They're very intelligent investors, but then they also require an ecosystem of sophisticated trading strategies and tools [...] They need derivatives, they need options, they need to get a short sell, and if our markets can get these things, what will happen is that you'll no longer see this massive volatility,” Hoskinson said.

At the same time, after institutional money comes to the cryptocurrency market, bitcoin is supposed to lose its volatile character, and therefore there will no longer be any easy profit from trading.

Blockchain is true technology

Jamie Dimon, JP Morgan CEO, known for his negative attitude towards cryptocurrencies, said he was not going to gloat over the fall in the cryptocurrency market.

“I don’t personally understand the value of something that has no actual value. You all can do whatever you want and I don’t care. I could care less what bitcoin trades for, how it trades, why it trades, who trades it. If you’re stupid enough to buy it, you’ll pay the price for it one day... The only value of bitcoin is what the other guy will pay for it,” said Dimon at the World Economic Forum in Davos.

He added that the blockchain technology standing behind cryptocurrencies seems promising to him, but cryptocurrencies are a bubble like a tulip fever. He admitted that bitcoin could go up to $100,000, which only proves, according to Dimon, the fact that it is a bubble.