London-Based Broker Remains Confident for Bitcoin Prices in the Future.

Feb 02, 2018 at 9:00

Despite the recent downward trend in the value of bitcoin this year, a London-based broker is firm that the movement is merely due to “growing pains” of the said cryptocurrency.

In an interview with Bloomberg, BitcoinBro CEO Oliver von Landsberg-Sadie said that despite bitcoin losing about 50 percent of its value in the past four weeks, he is still confident that it will remain bullish over the long term.

“It’s a healthy correction. It’s a sign that the market is growing up. It’s recognizing that cryptocurrencies are not a tool for money laundering or illicit use,” he explained.

He added that the decrease in the value of bitcoin may be attributed to the regulatory environment, citing recent developments in South Korea as a good example. South Korean regulators discovered around $600 million in illicit trades in cryptocurrencies, even as the country is crafting regulation for cryptocurrency exchanges.

South Korea is considered as a major factor in the rise of bitcoin and other digital coins, comprising about one-fifth of cryptocurrency trading activity across 12-plus exchanges in the country.

The BitcoinBro chief added that South Korea’s moves for a more regulated cryptocurrency industry, especially KYC and AML protocols, are helping bitcoin forward despite the effects on the its price.

Oliver Von Landsberg-Sadie likewise mentioned that even if bitcoin price suffers from stricter regulations, bitcoin is not a good choice for money laundering activities. He disagreed to BlackRock’s CEO Larry Fink’s claim that the rise of bitcoin is due to the global demand for money laundering.

“The on ramps and off ramps key points. How is a money launderer actually going to convert that money into something useful today. They’re going to need an off ramp like an exchange. But now that regulation is stepping and those exchanges are locking down on knowing their customer and having the proper money laundering controls, it’s a use case that will dwindle,” he further expressed.

The BitcoinBro also emphasized that bitcoin is a “terrible choice” for hackers such as Wanna Cry ransomware attacks because the funds are traceable along the blockchain. He added that privacy-focused coins such as Monero or Zcash, have anonymity feature in money laundering which is not present in bitcoin.

Clients who experienced bitcoin theft also stated that funds from the said cryptocurrency were easy to trace back to the wallet.

On the other hand, Fundstrat Global Advisors co-founder Tom Lee in recent weeks suggested putting in a buy order for bitcoin at $9,000, as the low presented the biggest buying opportunity for the year.

He has a $25,000 price target on bitcoin in 2018 and has been known to revise those forecasts to the upside. At present, bitcoin price is also still trading higher by approximately 800 percent since January 2017.