Bitcoin [BTC]’s narrative is still unclear says the cryptocurrency advisor

On 13th August, in an interview with CNBC’s Fast Money, Meltem Demirrors, the Chief Strategy Officer at CoinShares said, the narrative of Bitcoin [BTC] is still unclear. She believes that the cryptocurrency space will see more traction and the Bitcoin bubble has burst.

Meltem claims that people in the crypto space are still struggling to understand the whole picture of Bitcoin. According to her:

“The narrative around Bitcoin is still really hard to grasp. Really the only metric we have for most cryptocurrencies is the price, and price is such an imperfect metric. What does actual utilization look like? That’s really the struggle for crypto right now.”

In Demirror’s view, the current period is very opportunistic for investors, despite the downward trend. None are viewing Bitcoin’s value because they are struggling to understand it wholly.

She suggests, investors to look at it as an early internet stock like Microsoft and Amazon. She explains:

“so if we look at Amazon at its peak, it took nine years to recover from peak, trough, back to the peak. So you had to be an Amazon for nine years to recover your value. If we look at Intel, 15 years, Microsoft 17.”

According to Demirrors, investors must stop looking at Bitcoin in terms of price as a metric. When questioned by the panel for alternative metrics, she said, Total Addressable Market [TAM] and the penetration rate of that market could be chosen as alternatives.

When Bitcoin price shot up, people invested in cryptos just because of the fear of missing out [FOMO]. Now that the price has dropped, people seem restless and want to back out. This is the current trend, she added.

Demirror’s believes the main struggle the crypto market is facing is capital and that has been her main focus, she claims:

“what I’ve been focused on is treasury management for crypto firms really helping them maintain preserve and also extend their capital runway.”

Finally, Demirrors said she is not really sure how Bitcoin will behave, but the growth story depends on the kind of metrics that are put to use in evaluating it:

“I don’t think this is new we’ve seen this time and time again.  Any time there’s new technology that we’re really trying to understand and bring into the market. It’s just a question of finding the right data points, getting that message out there really… telling that growth story to investors who are looking for value in growth.”