Speculations, volatility, and people investing in cryptocurrencies without knowing what it really means. These are just some of the things that we’ve seen so far. However, 2017 proved to be the year of cryptocurrencies.
But how far can Bitcoin really soar in the coming year? This is a question by so many individuals today. Since Bitcoin slumped after reaching its all-time high, even losing 33% of its price in one day, a lot of people have so many questions regarding the future of Bitcoin and other virtual currencies.
To fully understand what we have in our hands, it is a good idea to take both the pessimist and the optimistic view of cryptocurrencies. Is Bitcoin soon going to slump or is it going to continuously rise in value?
Bitcoin Hitting the $60K Mark
Cryptocurrency entrepreneur and co-founder and president of TenX, Julian Hosp is actually saying that Bitcoin’s meteoric rise isn’t over yet unlike what a lot of people think. He even mentioned that he believes that Bitcoin is going to reach $60,000. However, there is also a catch in his prediction. He mentioned that we are most likely going to see Bitcoin hit $5,000 as well.
But the question is which will hit first? He doesn’t really know which one are we going to see first. Is Bitcoin going to crash before it returns to its usual bullish trend? Or will it rise to $60,000 before plummeting back to $5,000?
There are a number of critics to Bitcoin including central banks and government officials. In unison, they have expressed concerns regarding the public’s interest in cryptocurrencies. They also added that there is a likely crash that is waiting to happen considering that nothing underpins the value of Bitcoin and other virtual currencies.
Despite the volatility, Hosp mentioned that the dip experienced by Bitcoin from $19,800 hitting $11,000 before regaining its footing is really not surprising. He mentioned that “for experts, that have been in the market, this was actually a welcome dip”.
Instead of looking at the situation as a loss, investors can use the opportunity to actually acquire more shares on a 40 to 45 percent discount. However, he mentioned that he is certain that Bitcoin will most likely fall again.
A Bubble Waiting to Burst?
However, Hosp also provides a realistic view of what Bitcoin could become in the near future. He mentioned that Bitcoin is similar to what the dotcom bubble was 20 years ago. He also mentioned that there is a chance that digital coins will most likely be consolidated in the future. He also expects that digital coins that really don’t have any use will get sorted out eventually.
However, Hosp didn’t share his opinion regarding which cryptocurrency is most likely going to survive the coming years. However, he is certain that years will compress the numbers of cryptocurrencies that we currently have today.
And lastly, he mentioned that he sees Bitcoin as a digital gold rather than a currency that you can use on a daily basis to buy goods and avail of services.