In 2010, Bitcoin was worth a tiny $0.0003. By the end of 2017, it hit $20,000, revealing a huge spike in popularity. However, as with any financial investment, it is the future of the cryptocurrency that matters. What are the experts saying and what obstacles are there likely to be in the next few years? Read on for advice on whether Bitcoin will be worth investing in or whether you should ignore it before its value plummets.
2017 was a huge year for Bitcoin. The currency started out with a value of $900, but by December 17th, it hit $19,783. This high wasn’t set to stay however, with the cryptocurrency plunging to below $11,000 just days later. It also regularly dipped below $8000 throughout January and February 2017.
This shows the volatility of Bitcoin. One day it can soar, but within 24 hours, it will return to around $7000-$9000. While this is still a strong value, it doesn’t bode well for huge increases throughout the rest of this year. The currency seems to be stagnating, with banks banning their customers from buying Bitcoin and China and India threatening tougher regulation.
Tom Lee of Fundstrat predicts that the high $7000s is a low for Bitcoin and represents the perfect opportunity to buy. He has set a concrete target of $25,000 for later this year. This may seem optimistic, but other experts go even further.
Kay Van-Petersen, an analyst from Saxo-Bank has predicted that Bitcoin will hit anywhere between $50,000 and $100,000. This is interesting since he correctly predicted the meteoric rise at the beginning of 2017. It seems many experts are siding with the view that Bitcoin will continue to rise, despite its shaky start to the year. Many predict that a value of over $100,000 is due within the next decade.
Will It Go Mainstream?
With Bitcoin mining on the increase and greater media coverage, it may be the case that bitcoin becomes a currency for the masses. CEO of molecular data company Nano, Steve Papermaster, believes that Bitcoin has the potential to be used in the same way as traditional companies. Without the middleman of the banks, it cuts out unnecessary bureaucracy and reduces costs while speeding up transactions. By being a universal currency option, not tied to a specific location, it could be a simple and effective choice for the future.
Adversities to Overcome
The investment bank UBS has expressed doubts about the mainstream potential of Bitcoin. It has described the currency as a ‘speculative bubble’ which could crash at any moment. Bitcoin needs to prove itself to be stable and reliable, while becoming more accessible to the public, many of whom do not understand how it works.
The experts are divided on the future of Bitcoin and are reliant on speculation. However, this is no different to any other investment and therefore shouldn’t be cause to write off the cryptocurrency. Its growth is extremely recent, so more time is needed to see if it will continue to become mainstream or if it is a bubble on the cusp of bursting.