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As the cryptocurrency space expands at an unprecedented rate, various financial institutions and venture capitalists are optimistic about the new asset class. Their positive view of the crypto market was shared in the venture capital firm Race Capital.
Race Capital’s general partner Edith Yeng said that the cryptocurrency has received a powerful boost thanks to a whole generation of Internet users who believe that it is necessary to stop monetizing personal data, since they should belong only to them.
Responding to crypto critics claiming that the current state of the market is a crypto winter and it will be a long one, Yeung said that, in her opinion, this winter is quite warm.
Despite her optimism about the market, Yeung acknowledged that the price of bitcoin (BTC) has almost halved since the beginning of the year:
Cryptocurrencies and Web3 are much more than what is happening now with Bitcoin, and that is why we really want to focus on the software infrastructure for Web3, because regardless of the rise or fall in prices, this network still needs to be built.
Finally, she stressed the importance of patience when working with the cryptocurrency market in the conditions of a “warm winter”:
We are so excited about the current direction, because in a sense a warm winter will push out everyone who came here for short-term profits. It’s a long-term game.
At the end of December 2021, Race Capital CEO Alfred Chuang noted an increase in cryptocurrency trading volumes between 2020 and 2021 from approximately $50 billion to $100 billion per day and expressing hope that in 2022 the entire industry will be “very hot”.
It’s also worth noting that venture capitalists don’t seem to be bothered by the recent sell-off in the cryptocurrency market, as they have already invested more than $29 billion in crypto firms in the current year 2022, just $2 billion less than in all of 2021.
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