The year ahead
The new year brings about many predictions, many that are positive and a few that are negative. The naysayers are those like Robert Shiller and politicians from countries like France and Germany. The gainsayers are those that have had a change of heart like Jamie Dimon and analysts in finance and various other business leaders. Despite the various predictions that have happened over the past few years, there are a few truths. Bitcoin was launched in the year of 2009 and flew under the radar for most until quite recently. Over the course of time, the price of Bitcoin has appreciated. The price has not only appreciated, but a variety of transactions have been conducted through their code base. The virtual currency has gone through many phases that could be called as booms and busts, yet, it still is present and has birthed a whole new industry of cryptocurrencies and tokens. A whole industry is growing around the asset class, and quite a few nations are already invested in furthering the industry.
There are reasons for great caution, the most primary is that of regulatory woes from governments in France, Germany, China, Russia and other areas. The second one is the aspect of hacking, and the third is, for cryptocurrencies like Bitcoin and Ethereum to take action and implement ways to scale. The fourth aspect that should happen this year, as Vitalik Buterin pointed out, is to be able to progress toward meeting end goals that were written down in roadmaps. Progress has to be made each quarter so that users and the general community can see the early stages of what the blockchain is capable of.
A gloomy prediction
A CIO of an investment firm called the Bleakley Advisory Group has a grim forecast for the pioneer virtual currency, Bitcoin The lead investment officer of the financial firm has glanced into his crystal ball and has seen the future.
What does the future look like? To him, the future for Bitcoin seems very bleak. The Chief Investment Officer believes that the cryptocurrency will be around for a while but sees that the price will receive a significant hit due to the bubble and its inevitable burst.
Boockvar, the CIO, thinks that the price of Bitcoin will plummet from its current price to about the cost of an Amazon share, $1,000.
“Over the next year I wouldn’t be surprised if it’s [BTC] down to $1,000 to $3,000.”
In response to the inquiry of how the stock market would react if the Bitcoin Bubble were to burst, he noted that there shouldn’t be too much of an effect, due to the value of the current economy being more than 15 million dollars.
He did warn that those who are speculating with money that they don’t have will be taking a big hit if the Bitcoin Bubble were to burst.
He then went on to repeat similar things heard in the past such as the rise of crypto has been due to the way that the central banks have been controlling the money supply via low-interest rates, thus providing easy money and propping up booms such as the one in the cryptomarkets.