According to a General Partner at an Asian investment fund, BitTorrent Token (BTT), is not to be underestimated. However, he also outlined that BTT Price rally is unsustainable in the short term.
‘Don’t Underestimate The Potential of BitTorrent Token (BTT)
In a detailed Tweetstorm, former derivatives at major banking institutions such as Barclays and Citigroup, current General Partner at Asian investment fund Circuitcap, Eugene Ng, shared his take on why BTT shouldn’t be underestimated.
According to the industry expert, one of the main pillars of BTT’s future importance is BitTorrent Speed.
As My Bitcoin News reported, BitTorrent announced one of the platform’s key new features – BitTorrent Speed. It’s supposed to launch in the second quarter of 2019.
According to Eugene Ng, that’s one of the landmark pillars which will make the BTT token important in the future. It will enable users to bid it for faster downloads, while also enabling them to earn it for seeding for faster downloads.
Additionally, he outlines that BTT Speed can grow its user base through existing clients such as uTorrent, Transmission, Xunlei, and others. Furthermore, he holds that if a user can expect additional value through monetization and if the switching cost to BTT is particularly low and one click away, this could cause users to switch to BTT.
BTT Price ‘Unsustainable’ in The Short Term
BTT’s price surged following the ICO and it’s currently trading at about 9 times the initial value, according to data from CoinMarketCap.
However, the industry expert holds that the current rally is unsustainable in the short term. As reasons for his findings, he lays down the current market condition, the general public perception of Justin Sun – Tron’s founder, and TRX itself, and the expectation of a general liquidation.
Eugene Ng also finds that if BitTorrent delivers on its Q2 promises and BTT starts seeing adoption from non-crypto users, then the rally may have potential.
What About Market Size Potential?
On the matter of potential market size, the expert said:
It’s said that the total no. of BitTorrent users may amount to more than 250 mil globally. To give one perspective, there is around 2.9 to 5.8 mil bitcoin wallets. Network effect could be more than 40x than of BTC.
Ng says that he expects current BTT holders to gradually liquidate their holdings ahead of the large 11bn BTT airdrop which is about to take place on February 11th.
… they’re likely to sell BTT for BTC and then, from BTC to fiat – this will cap BTC in the next few weeks. What’s also impressive is the current daily turnover in volume ranging around ~500mil a day. (i.e. so they have decent liquidity and MMs for that to happen). – he said.
What do you think of the BTT Token? Do you think its price is sustainable? Let us know down below!
Cover photo by Leio McLaren (@leiomclaren) on Unsplash
