A student who helps ICO projects with brand building and is studying at the London School of Economics has warned that the bull market in cryptocurrency witnessed in 2017 will never be repeated and the survival of the fittest in the space will be “very cruel.”

Chang Liu used to work for a marketing agency in China which helps overseas ICO projects enter the Chinese market.

As an advisor, he helps several ICO projects with brand building and is now the ambassador for an ICO project Aeternum, helping them exploit the market.

He’s currently studying for a Master’s Degree majoring in Quantitative Risk Management at the London School of Economics.

Volatility

He says he doesn’t have a professional technical background and is “more concerned with the economic and social impact of blockchain technology as well as the volatility of the cryptocurrency market.”

He spends a lot of time researching the secondary market and looking for investment opportunities from a financial perspective.

“From my perspective, I am very convinced that the price of Bitcoin will far exceed $20,000 in the future, even though it may take two years or more,” he says.

“For the cryptocurrency market as a whole, I’m afraid the greatest bull market has gone forever. However, it is a great chance for high-quality projects to stand out.”

He points out that during 2018, the price of Bitcoin “has fallen by 80% since it reached its peal in December 2017, while most cryptocurrencies perform worse than Bitcoin.”

Bubble

“Some people said it’s time for the bubble to break. Bitcoin can never be a currency. Some others said that we should not worry about this.

“After all, from 2011 to 2012, the price used to decrease as much as 93%.”

“I have two comments on these points. First, Bitcoin will never be a narrow-defined ‘currency.’ Although Satoshi called it a ‘Electronic Cash System’, now we have to admit Bitcoin has been surpassed by many cryptocurrencies in terms of technology.”

“Even if there are really crazy governments that intend to use cryptocurrency as the official currency in the future, they will develop a new public chain based on more advanced technology.

“I believe Bitcoin will become a special ‘target’ – its price represents people’s belief in blockchain and the real achievement of blockchain technology.

Decentralisation

“Because the biggest advantage lies in its decentralisation (the chips of most cryptocurrencies are too concentrated). No individual or organisation can control the market (although some government can influence it),” he adds.

“Bitcoin wants to turn trust in people into trust in algorithms. This concept belongs to the future. And in the future, faith is a very valuable thing. Those who believe in this concept will support Bitcoin.

He continues: “Second, this time the bear market is different from the past few times. Because since 2017, some blockchain projects have really been realised.

“When a technology is really being used in real life, we can see much more potential advantages and disadvantages of it. In the past, the volatility of crypto market was basically derived from market sentiment. But now we have some real products to rely on.”

On the subject of ICOs, he says: “ICOs can no longer raise funds easily by simple blueprint on PPT. The bullish condition have gone. Only the best projects can be favoured by investors and they will have hundreds times of return. While the garbage projects will only be left unattended.”

Not very mature

He says in 2019, more and more blockchain-based technology will be used in daily life “although it’s not very mature in most fields.”

“Both governments and companies would be very eager to try it. Many ICO projects will be launched and the good ones will stand out.

“The prices of BTC, ETH, EOS, etc will remain low. The survival of the fittest in the crypto market will be very cruel.

“For non-professional investors, it is difficult to identify the quality of a project, so investment needs to be very cautious.

“For the general public, they just need to enjoy the improvements that blockchain technology brings to everyday life.

“Don’t rush to try the investment in the secondary market. If they didn’t invest in cryptocurrencies early, 2019 is definitely not a good time.”

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.