Spencer Bogart, a blockchain venture capitalist, said during an interview with the CNBC that Bitcoin is still considered a buy despite its continued losses.
The increased number of use cases of the digital currency is evidence that the popular form of money is being institutionalized.
During an interview with the CNBC’s ” Fast Money ” last Friday, Bogart, who is a partner at Blockchain Capital, stated: “Every major bank is trying to do something in the space.”
He stated: “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,” he added. “A deeper institutionalization of bitcoin is overall positive.”
Still, the crypto-coin has witnessed better days. After rising last December to about $19,500, bitcoin has plunged more than 50 percent since the beginning of the year. Last Thursday, with increased scrutiny of regulators in the cryptocurrency space, the coin dropped yet again — this time below the $8,000 mark, where bitcoin had floated for several weeks. Last Friday, bitcoin changed hands about $7,400.
Regardless, Bogart said that it is still a buy. In fact, he said that it is the only coin that traders should be investing in as the coin becomes more mainstream.
Bogart said that many of the other forms of cryptocurrency are “over-promising and under-delivering. Meanwhile you have a few that are kind of excelling at their use cases. Bitcoin being one of them.”
He said that trader should sell coins including TRON, Cardano, NEO, and IOTA.
Bogart stated: “A lot of those tokens are overvalued,”
He added: “They could go up significantly, but they also have a significant headwind.”
However, he described alternatives such as ripple, ethereum, EOS, and bitcoin cash as “neutral” — and he said that investors should hold for now.
Bogart said that he is especially cautious when it comes with ethereum, which he said has a lot of overhangs since there are so many initial coin offerings (ICOs) that have been built on top of ethereum. He said that if the ICOs do not work out, that could be bad news for the platform that it is built on.
Bogart said that bitcoin, however, should “at least” end above $10,000 by the end of this year. He acknowledged that the even the large-cap coin could experience some headwinds.
He stated: “But when I look out over the next year, two years, I mean the story is very much materializing.” He was referring to the increase in the value of bitcoin.
Bogart stated: “Could bitcoin trade lower? Certainly. But do I think it will be higher a year from now? Absolutely.”