Correction or Bubble? Where the Price of Bitcoin is Headed
Story by: Bogdan Kagan
After shedding billions of dollars for several months, the price of Bitcoin seems to be in recovery. Although the Bitcoin ‘boom’ that took place near the end of 2017 has veritably ended, the cryptocurrency is still as popular and controversial as ever.
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“There’s been a lot of buzz lately from well-known billionaires regarding the quality of this new asset class. Some have called it toxic, or even poison,” said Mati Greenspan, Senior Market Analyst at eToro, in an exclusive email to Finance Magnates. Warren Buffet commented earlier this week that Bitcoin was “rat poison.”
“To be clear,” Greenspan said, “to those who are in the top 1% of the world’s earners, it is very toxic.”
He went on to explain that BTC’s empowering qualities present a serious threat to the status quo: “Bitcoin’s inherent value is derived from people who are not lucky enough to live in countries with a stable economy or a trustworthy government.”
“A Global and Independent Form of Money”
“Yes, the short-term price movements can be highly speculative,” Greenspan continued, acknowledging the risks associated with an asset that has historically proven itself to be so volatile. “However, in the long run, Bitcoin has already proven its value as a global and independent form of money.”
Indeed, Bitcoin’s recent rapid increase in value has created a vast amount of price forecasts from both experts and analysts, with some predicting major growth of the cryptocurrency throughout 2018 and in the coming years.
At the time of writing, the price of one Bitcoin is floating at around $9,300, a decrease from nearly $20,000 towards the end 2017. The latest price comes after a dramatic rise in the coin’s price on April 12, 2018, that saw its value increase by more than $1,000 in under an hour.
$250K: ”It’s Going to Happen”
One of the bolder predictions came from billionaire investor Tim Draper, who made his vast sums of money through early investments in giant internet companies such as Twitter and Skype. Draper’s prior predictions in 2014 proved correct, as Bitcoin’s price soared from $300 to $10,000.
“I’m thinking $250,000 a Bitcoin by 2022,” Draper told a crowd gathered outside Draper University in California. “Believe it; it’s going to happen. They’re going to think you’re crazy but believe it; it’s happening, it’s going to be awesome.”
He even backed up this sentiment on Twitter, correcting an earlier tweet where he predicted the price to be at $25,000 in 2022:
Original story: https://tinyurl.com/yac38be9
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