The CEO of instant cryptocurrency exchange platform ShapeShift told Bloomberg TV on May 15 that bubbles are an essential part of the industry’s growth.
Speaking in an interview, Erik Voorhees argued that the volatility seen in bitcoin (BTC) and altcoin markets over the years is a necessary phenomenon for a nascent asset. He then added:
“If it did that, people would start buying it up and frontrunning it and turning it into a bubble.”
Voorhees, whose firm offers trading wholly within the cryptocurrency realm and does not involve fiat currency conversion for users, was speaking as bitcoin set its highest price in over a year.
As Cointelegraph reported, a slow bull market which began early April gathered speed this month, with BTC/USD advancing over $8,000 to cap monthly gains of over 60%.
Voorhees did not identify a specific reason for the newfound market optimism, arguing the rise was due to mass individual trader activity.
The 2018 cryptocurrency bear market also took its toll on performance, ShapeShift making roughly one third of its staff redundant in January.