The cryptocurrency space could branch out into three different markets — and people may even stop talking about crypto as a single entity one year on, predicted Paul Brody, global blockchain leader at EY.
Bitcoin and ether have had a wild ride in recent weeks, with billions of dollars wiped off their market value, according to Coinmarketcap.com.
Bitcoin, the largest digital currency by market cap, at one point plunged by 30% to hover near the $30,000 level. It has since bounced back partially to current levels of about $38,090, according to Coin Metrics.
There are currently three “very different” stories going on in the cryptocurrency space, Brody told CNBC’s “Street Signs Asia” on Tuesday.
1. ‘Meme coins’
This segment of cryptocurrencies “could be categorized as investing as entertainment,” Brody said.
“It’s hard for me to predict where they’re going to go, but I don’t see them as having a very big future in the ecosystem,” he added.
2. Bitcoin as ‘digital gold’
The next part of the ecosystem revolves around bitcoin, Brody said. The digital token has often been cited as a potential competitor to gold as a hedge against inflation and safe-haven asset. Still, bitcoin’s price volatility tends to be much higher as compared with gold.
According to Brody, however, bitcoin is “better than gold” in some ways.
“When the price of gold goes up people mine more, but you can’t really do