Bitcoin Approaching a 'Breakout or a Breakdown,' Says Civic CEO Vinny Lingham

Vinny Lingham, Civic CEO and former Shark Tank investor, recently discussed the price of Bitcoin in an interview for Cheddar.com

Lingham started the interview arguing that there is a good chance that Bitcoin will retest $3,000 as a bottom, and if it hits that low we will probably see a breakthrough, adding that he believes the market is searching for a new bottom that hasn’t yet arrived:

“The reality is it will probably trade sideways, between $3,000 and $5,000, for another month or two while it is trying to find which way to go. And when it finds direction there will be a breakout or breakdown.”

When asked if trading sideways would be good or bad for cryptocurrencies, Lingham promptly said that sideways trading “is a bad thing for crypto” and agreed that it leads to even more selloffs:

“Bitcoin, in particular, has got this history of bubbles and busts. So, when there is upward momentum the going gets good and everyone gets on board. But the sideways trade doesn’t really help much because, at this point in time, we’ve got more sellers than buyers. That’s a problem, there is no really momentum in the crypto market right now.”

Civic During the Bear Market

The interview then shifted to Civic (CVC), a startup that encrypts identity information on the blockchain. Lingham explained that the decreased interest in crypto has only had a limited effect on Civic. This was primarily due to the fact the team  held most of the ICO proceeds in cash, unlike many companies who held onto Ethereum and Bitcoin at very high prices.

Lingham also mentioned that going forward - expenses and the treasury will have to be carefully managed. He ended the interview saying that all companies in the space should tighten their belts and make sure they have enough to get their products to market.

Today (Jan 11), he added another prediction:

U.S. Treasury Secretary Steve Mnuchin 'Fine' With Launch of Facebook’s Libra

The secretary of the U.S. Treasury, Steve Mnuchin, has revealed he is “fine” with the launch of the Facebook-led cryptocurrency Libra, as long as the project follows strict financial rules.

According to a report published by Bloomberg, Mnuchin revealed his thoughts on the Libra cryptocurrency while speaking in a Washington, D.C. hearing of the House Financial Services Committee, responding to a question from a lawmaker. He was quoted as saying:

I’m fine if Facebook wants to create a digital currency, but they need to be fully compliant. In no way can this be used for terrorist financing.

Since Libra was announced back in June of this year, Mnuchin revealed he has met with Facebook various times to discuss regulatory concerns, something that slowed the cryptocurrency’s pace towards its launch, expected in 2020.

The cryptocurrency is set to be governed by the Libra Association, and is reportedly going to be backed by fiat currencies and short-term U.S. Treasury bonds. Its backing in terms of fiat is set to consist of the European euro (18%), the Japanese yen (14%), the British pound (11%) and the Singaporean dollar (7%).

During the hearing, Mnuchin also addressed the U.S. potentially developing its own digital currency, and noted that both he and Federal Reserve Chairman Jerome Powell don’t see a need for it in the near future. Mnuchin stated:

Powell and I have discussed this – we both agree that in the near future, in the next five years, we see no need for the Fed to issue a digital currency.

The European central bank, according to a report, may launch its own digital currency if cash usage drops and is the private sector fails to create an efficient solution for cross-border payments, which the financial institution deemed too expensive.

Featured image via Unsplash.