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Scared of heights or falling? Then, Bitcoin is not for you

December 26, 2017 6:02 pm


If you’ve ever been in a rollercoaster, then you know that it can either thrill you to bits or drain the color from your face and body.

If you fancy hands in the air, free falling in total despair, twists and turns and gravity defying stunts, then you’re naturally equipped to hop on the Bitcoin runaway train.

The digital currency had climbed from around $1,000  late 2016 to as high as $21,000 on some exchanges, but it has posted heavy declines since.

And if late December 2017 is any indication, you’re in for a 2018 ride to remember and it’s not for the faint hearted.

Who fell down the chimney this Christmas? It wasn’t Santa.

Read: Cryptocurrency has taken the plunge! Is Bitcoin preparing for a major crash!

Pre-Christmas massacre

Bitcoin rallied past $15,000 on Boxing Day in early trading London, the biggest gain on a closing basis in more than two weeks and the first in six days,” said Bloomberg today.

It was a late present as also rival currencies litecoin and ethereum were up 2.9% and 2.1%, respectively.

“The gains will be a welcome relief for cryto bulls, after bitcoin declined 26% in the five days through Monday. The advance suggests that, even as financial authorities issue warnings about the risks of a bubble in the asset class, investor interest remains intact, at least for now.”

Courtesy of Bloomberg

Reuters said Bitcoin, the world’s biggest and best-known cryptocurrency, fell nearly 30% at one stage on Friday to $11,160.

“There is no right current price which would reflect the right current valuation,” Andrei Popescu, Singapore-based co-founder of COSS, a platform that encompasses all features of a digital economy based on cryptocurrency, told Reuters.

“Taking profit is right, while buying into a long term projection is also right. You don’t have to be right in this market, just less wrong than the rest,” Popescu said.

What are the predictions for crypto 2018?

Read: The sport of spending billions only to lose the match and pay dearly for it

Guesswork

According to CNBC, Bitcoin could hit $60,000 in 2018, but it could happen before or after a crash to $5000.

Cryptocurrency entrepreneur Julian Hosp told CNBC that Bitcoin’s rapid rise isn’t over yet, albeit with a catch.

“I think we’re going to see bitcoin hitting the $60,000 dollar mark, but I also think we’re going to see bitcoin hitting the $5,000 dollar mark,” said Hosp, co-founder and president of TenX, a virtual currency wallet and card facilitator.

“The question is though, ‘Which one is it going to hit first?'” he said.

He said industry insiders had expected the price of Bitcoin to fall, given the “dangerous” elevation of value that it has seen over the past few months.

“This dip for us was very, very healthy, and some of us have used it to buy a little bit more because suddenly we had 40-45 percent discount to all-time highs,” he added.

Read: Resolve or dissolve: Prince Alwaleed may lose control of Kingdom Holding

Hosp likened the current interest in bitcoin to the dotcom bubble that started about 20 years ago.

“I don’t think it’s going to be a bubble that’s just going to burst and everyone is going to lose their money, but I think it’s going to be that all the coins and all the assets with very little use or value are going to get sorted out,” he said.

Stock market jolter  

A Bitcoin implosion could drag stock market into chaos, Wells Fargo’s Head of Equity Strategy,  Chris Harvey tells CNBC “Trading Nation.”.

“There is a significant amount of froth in the crypto markets. We do think that if that froth comes out, it will start to spillover.”

“It’s something to watch out for in 2018.”

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By Hadi Khatib
Hadi Khatib is a business editor with more than 15 years' experience delivering news and copy of relevance to a wide range of audiences. If newsworthy and actionable, you will find this editor interested in hearing about your sector developments and writing about it.



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