$40k may be on the horizon for next year, but Bitcoin investors still need to act with caution
Crypto enthusiasts couldn’t contain their excitement when their favorite virtual currency reached, and passed, the $10k mark. This is just another record-breaking highlight in Bitcoin’s phenomenal year, which saw the price of the currency increase by over 900%.
From it’s humble beginnings at just $1k at the start of 2017, it continues to grow, even exceeding the $11k mark at times. This level of growth is a temptation that investors around the world cannot ignore. Google Trend shows that the term ‘buy bitcoin with credit card’ has become increasingly popular on the search engine. In fact, on an interest scale of 1 to 100, the term is nearing the end mark.
On the 26th of November, as Bitcoin was within touching distance of $10k, popular trading platform Coinbase, had a total of 13.3 million users. Just two months ago, they had 10.6 million.
Bitcoin fans are optimistic that this is only the beginning. Hedge fund superstar, Mike Novogratz, firmly believes that the currency will reach $40k at the end of next year.
“Bitcoin could be at $40,000 at the end of 2018,” he said to CNBC.
However, don’t put all of your money in one Bitcoin basket just yet. Novogratz went on to say that smaller investors should put between 1% and 3% into the currency, while high net worth investors can go as high as between 5% and 10%.
Even though these investors are eager, willing and ready, they could be in for a bit of a letdown according to Hesham Rehman, CEO and Co-Founder at Bitxoxo.
Rehman believes that even with this growth, there won’t be a massive return in the short-term future.
Co-founder of Zebpay, Sandeep Goenka, also had some words of caution.
“We advise investors to invest in Bitcoin in a systematic manner,” he said.
Crypto cynics are on the flip side of the virtual coin, offering their usual bubble arguments. They’re saying that that it could be even bigger than the dotcom bubble of the 1990s.
Even though Bitcoin has gained some support in the financial industry thanks to CME and Nasdaq, banking institutions are still not convinced.
“I would simply not recommend this to the everyday investor,” Reuters quoted Ulrich Stephan, chief strategist at Deutsche Bank, which is Germany’s largest lender, as saying.
However you may choose to view cryptocurrencies in general, they cannot be ignored. Bitcoin in particular has managed to exceed expectations, and seems set to continue to do so.
Author : Jack Dean