Sharma thinks that Bitcoin might become an alternative to reduce the dependency on the US dollar within three to five years. Due to the US Federal Reserve (Fed) moves, Sharma believes he is not ready to make predictions about cryptocurrencies.
Ruchir Sharma is a former investor at financial services firm Morgan Stanley and New York Times bestselling author. He recently compared the decline in the price of Bitcoin to the bearish trend of Amazon, saying the former will grow as the latter does.
The current chairman of Rockefeller International thinks the drop will continue in the short term. However, he said he is optimistic about the future of the pioneering cryptocurrency.
Ruchir Sharma Considers that Bitcoin Might Return
Ruchir Sharma has joined well-known analysts who believe that BTC will recover in the future. He supports the idea that a different monetary system will eventually replace the US dollar. According to the businessman, Bitcoin could be an excellent alternative.
Sharma stated that people should not depend on the US dollar any longer. He thinks there is a need for another currency more stable in value to meet some transactional requirements. He predicted that BTC might emerge as a more stable asset within three to five years.
The chairman of Rockefeller International believes that Bitcoin might follow in the steps of e-commerce firm Amazon. The well-known investor said that the prices of BTC might reflect the growth of Amazon (AMZN), which suffered a 90% drop in the past.
In the early 2000s, the value of Amazon stock suffered a considerable loss due to the dot-com crash. Although it appreciated over 300 times within the following 20 years, the executive said its collapse has not yet ended.
Sharma Thinks that Bitcoin Will Not Come Back Yet
According to Ruchir Sharma, a harsh crypto winter for Bitcoin may continue in the next six months. In that period, the price might suffer further declines, in line with a drop in the price of US stocks.
He explained that bearish markets usually lasted about a year and pointed out that stocks have dropped by 35%. He highlighted that the current bearish market is under one year old while the S&P 500 index has only decreased by 20%.
Concerning the moves of the US Federal Reserve (Fed), Sharma does not think that risk appetite will open yet. In that regard, he said that he was not yet ready to say anything about Bitcoin and other cryptocurrencies.
He commented that the US bearish market regime, the engine of risk appetite worldwide, is still very much in play. He concludes that the global collapse is not yet complete but warns about watching out for this space.
He Thinks There Is a Bullish Sentiment in India
Ruchir Sharma recently said that he is bullish on cryptocurrencies in India. He pointed out that the government has limitations for controlling digital assets.
The residents of the Asian country benefit from the use of Bitcoin and other cryptocurrencies from an economic point of view. They can make payments through direct digital transfers in their everyday lives.
Sharma stated that India shows how much building good public digital infrastructure can help transform the lives of citizens. He considers it possibly the most important economic development for that nation.
By Alexander Salazar
