On Sunday morning, the value of bitcoin barely grazed the $20,000 mark in the US – hitting $19,891 on GDAX before re-correcting back to $19,189 at the time of writing on Monday. In Asian markets, bitcoin actually hit the mark. Spectators and cryptocurrency fans have been wishing and hoping for the digital coin to finally breech $20,000, which would be a massive gain considering bitcoin was sitting around $5,000 in October.
The very close encounter coincided with the launch of bitcoin futures, which just became available for the first time – a major event that has had some analysts holding their breath for another surge.
While the price somewhat re-adjusted back toward $19,000, there is still a hefty amount of optimism in the air when it comes to the future value of bitcoin.
The bitcoin surge, and what’s to come
Earlier today, CNBC reported that Ronnie Moas, the founder of Standpoint Research, is forecasting another 500 percent gain in bitcoin. This summer, Moas famously predicted that bitcoin would hit $5,000 before 2018 arrived. Despite the fact that he was under the mark, it was considered a questionable estimate at the time – nobody really believed that bitcoin would appreciate that much.
Now, Mr. Moas is pushing yet another lofty prediction:
“The end-game on bitcoin is that it will hit $300,000 to $400,000 in my opinion, and it will be the most valuable currency in the world,” he told CNBC’s “The Rundown.”
Now we are talking about another huge windfall for early buyers of bitcoin, and it may not be too late for those of us who have been hesitant to jump on the bitcoin bandwagon.
For a lot of investors, there is a fear that we may have “missed the boat” when it comes to getting in on the bitcoin action – but can the unstoppable bitcoin rally continue after so much positive momentum?
Bitcoin getting legitimized by old-school finance and tech figures
Bitcoin’s wild gain in value over the past three or four months has proven even the most stringent critics wrong about an impending cryptocurrency market crash. It seems as though there is always a well-known banking exec or financial guru giving their two cents to
That being said, there are still a number of skeptics out there – like the infamous labelling of bitcoin as a “fraud” by JPMorgan’s Jamie Dimon. Then there’s the Chief Executive Officer of Goldman Sachs, who called bitcoin a “vehicle to perpetrate fraud” a couple weeks ago when being interviewed by Bloomberg Television. The investment bank director said that bitcoin, as a financial instrument, does not seem to be an effective monetary unit or store of value.
Meanwhile, there is a growing number of financial and economic experts that are either coming around to the idea of bitcoin or doubling down on their earlier enthusiasm. Earlier this month, for example, Yahoo co-founder Jerry Yang said that he believes in cryptocurrency when it actually plays an important part in our society.
“Bitcoin as a digital currency is not quite there yet,” he said to CNBC. “People are not using it to transact. People are using it as an investable asset.”
Similarly, Steve Wozniak – one of tech giant Apple’s co-founders – said in October that bitcoin actually has an advantage over traditional currency. Unlike the US dollar, which Wozniak called “kind of a phony,” bitcoin has a finite amount in circulation. The tech expert says that that particular difference makes bitcoin the more “genuine and real” option between the two.
It is very clear now that blockchain technology isn’t going away – and it may even become as ubiquitous as the internet we’ve grown to love and depend on.
It will be fascinating to see what people like Jamie Dimon will say in six months to a year from now, when bitcoin and other cryptocurrencies (probably) skyrocket in value and become further entrenched into our daily lives. I wonder what the nay-sayers of the internet boom were saying back then – and what they’re saying now.
This article does not constitute investment advice or recommendations, and the author does not hold any cryptocurrency assets mentioned above.