The investment director of the financial conglomerate Guggenheim Partners said that cryptocurrencies remind him of "Tulip Mania" the Dutch "bubble" of the 17th century. At the same time, back in February of this year, he assumed that Bitcoin could one day be able to break through the insane $600,000 mark.
After the total capitalization of the cryptocurrency market dropped to $1.5 trillion, and the industry experienced the strongest collapse since March 2020, Scott Minerd, apparently, decided to join the "bear camp". In his tweet, Minerd stated that, as prices rise, cryptocurrencies, like tulip bulbs once, will “proliferate” until supply reduces demand for digital assets at current market prices.
The crypto community immediately reacted to his statement on Twitter. The head of Compound Finance clarified that the supply of cryptocurrencies does not increase with an eye on the price, therefore, to say this is like admitting to your own financial negligence.
One of the crypto-YouTubers asked Minerd if his company intended to invest “hundreds of millions of dollars” in Bitcoin, hinting at the absence of any “research” on the topic of cryptocurrencies by Guggenheim Partners. Although Minerd himself reported back in February that their conglomerate had been watching the "rise of Bitcoin" for almost ten years, and at the $10,000 level, the observation became "especially interesting."
While community members pounced on Minerd, another expert in the field, Mike Novogratz, agreed with his theses. According to Novogratz, the spread of cryptocurrency is a reaction of supply, which exceeded demand for it. Similar events happened four years ago when people were firmly convinced that most of the ICOs existing at that time would “live and prosper” in the future. But the result was different.
In response, one of the commentators on Twitter rightly drew Novogratz's attention to the fact that DeFi is one of the main reasons for the growing market, calling these projects not “tulips”, but a real use case for tokens associated with BTC and ETH. Novogratz, in turn, agreed with this statement.