It has been predicted that Bitcoin could reach prices as high as $50,000 this year, although it will be as volatile as ever.
Physical Bitcoin Laying on Dollar White Background
These predictions have been made by Jeet Singh, who is a cryptocurrency portfolio manager, who has also said that it is common for virtual currencies to fluctuate by as much as 70 or 80 percent. He compared Bitcoin to technology giants, saying;
“If you look at Microsoft or Apple, when they went public, their stocks were very volatile because the market wasn’t mature.”
This volatility might have worried new traders, but experienced traders are likely to be much less concerned, as they are used to larger fluctuations. This does mean though that as Bitcoin becomes more mainstream, and even inexperienced traders get a better understanding of cryptocurrencies as a whole, this volatility is likely to calm down, which has led him to make huge predictions;
“Bitcoin could definitely see $50,000 in 2018”
The fact that Bitcoin is so volatile has meant that it has received a lot of criticism, and even that it is a bubble that will soon burst. Stephen Poloz, the boss of Bank of Canada, has previously claimed that virtual currencies would never be used as a real currency, and have even branded it as a form of gambling, and not a legitimate investment. He said;
“A lot of words have been used but I think the main thing is, buyers should be aware it is much closer to gambling than investing…They are not assets, really, for the most part. I suppose they are securities technically. But tax authorities treat them as securities. Because you have to pay tax on a capital gain or loss.”
Singh went on to say that he believed that cryptocurrencies would be used a lot more over the next few months, saying;
“There are not so many vendors right now who accept cryptocurrencies but there’s huge adoption on the black market.”