Bitcoin Acting as ‘Safe Haven of the Crypto World’ – eToro Senior Market Analyst
Bitcoinist spoke with Mati Greenspan, Senior Market Analyst at eToro, on where the Bitcoin price is headed, how the popular platform is handling an influx of new users, and where he sees the cryptocurrency market headed in 2018 and beyond.
eToro is the leading social investment platform in the world. Moreover, it is one of the first traditional trading platforms that has embraced Bitcoin trading.
By the end of 2013, eToro reportedly had over 3 million accounts, a number that has grown exponentially in the past few years, particularly after the platform began supporting Bitcoin in 2014. Another major boost was the platform’s addition of Etheurem and a few other cryptocurrencies in the beginning of last year.
So what’s in store for eToro and the cryptocurrency market for 2018? Let’s find out…
‘This Dip Could Provide an Excellent Point of Entry’ – Mati Greenspan
Bitcoinist: What is your position at eToro?
Mati Greenspan (MG): Senior Market Analyst.
Bitcoinist: When did you become interested in Bitcoin? Are you a maximalist, or do you see potential in many cryptocurrencies coexisting?
MG: I first heard of Bitcoin in March of 2013, and my first reaction was to post about it on Facebook. As a market commentator, I was immediately excited by the prospect of a borderless, decentralized form of money and couldn’t help but feel like something revolutionary was happening.
Bitcoin is the first, and I think that, if it can be made to scale, it can stay for hundreds of years. However, several other cryptos have emerged that have different purposes and serve different functions. These days, there are thousands of coins. Probably, most of them won’t last, but many of them will.
Bitcoinist: eToro was one of the first online trading platforms to support Bitcoin. What made your company decide that crypto could be the future? Is it here to stay?
MG: Full credit goes to our founder and CEO, Yoni Assia. Yoni has always had his eyes locked firmly on the future and was actively involved in the Bitcoin community from the very beginning.
Bitcoinist: Can anyone sign up for an eToro account similar to Bittrex or Poloniex, for example?
MG: Please don’t make such comparisons. eToro has more than 2,000 markets and allows more than 8 million users to share their trading ideas and copy other people’s investments. With the exception of Japan, Canada, and the USA, anyone can open an account instantly.
Bitcoinist: How popular have crypto markets become compared to traditional markets on your platform in recent years?
MG: Extremely! Our clients are usually tech-savvy and social. Cryptos are a hot topic now, so it just makes sense.
Bitcoinist: Has there been an uptick in new users this year?
MG: Indeed. During the crypto surges of 2017, we saw massive amounts of new clients coming on board and were forced to scale our servers and staff at a rapid pace.
Bitcoinist: What coins have received the most requests to be added on eToro?
MG: At the moment we have 7 of the top traded cryptos on the platform and will be introducing a few more very shortly. Our users are constantly requesting to add new ones, and I wouldn’t be able to say which are the most popular. For us, it’s a matter of liquidity. We need to ensure that any coin we add will be able to supply the massive demand from our clients.
Bitcoinist: You often hear the caveat “never store your funds on an exchange.” What type of security best practices does eToro use?
MG: Excellent question. We take security extremely seriously here and have an excellent team in charge of that. We are also a well-established financial firm with more than 10 years in the industry and are operating under the guidance of our financial regulators in Europe and the UK.
Bitcoinist: What do you think is the reason for the current price drop for Bitcoin? Seasonal phenomenon or something more serious?
MG: Just an average shakeout. Too much speculation money entered the system and has now come off the table. Nothing this market hasn’t seen before, and nothing has changed fundamentally.
Here’s a technical analysis I did today showing the historic pullbacks in the market. This is familiar territory.
Bitcoinist: Why are most altcoins getting crushed much worse than Bitcoin?
MG: In this case, Bitcoin is acting as the safe haven of the crypto world. It’s quite fascinating.
Bitcoinist: Traditional markets are also shaky at the moment. If another repeat of 2008 happens, do you recommend holding Bitcoin?
MG: Definitely yes, but with caution, of course. The best thing to do in a financial melt-down is to diversify your portfolio. Adding a small amount of crypto-assets can add exposure to something that is generally unconnected to the rest of the markets.
Bitcoinist: When do you think Bitcoin will rebound, and what will it take? Will it take another 3 years, or is it different this time?
MG: We had a nice rebound over the past week. Let’s hope it lasts. Bitcoin has seen bigger sell-offs before but has always bounced back. For those who believe in the future of this tech, this dip could provide an excellent point of entry.
Bitcoinist: Your prediction for price by the end of 2018?
MG: Anywhere between $1,000 and $1,000,000. You shouldn’t invest more than you can lose, but the potential gains are unlimited.
Is Bitcoin acting like a safe haven for cryptocurrencies? Share your thoughts below!
Images courtesy of Shutterstock, eToro