There is a lot of excitement regarding the Bitcoin price. Unsurprisingly, this also triggers a lot of warnings to remain cautious. DataTrek Research co-founder Nick Colas isn’t too convinced cryptocurrency is here to stay. Even though he is Wall Street’s first Bitcoin analyst, his outlook is rather grim.
The Chicken and Egg Question
One of the most heard questions is whether or not Bitcoin is a good investment. There is seemingly no right or wrong answer to this question of right now. Some people think it is the future of money, whereas others remain cautious. Nick Colas, Wall Street’s first analyst to cover Bitcoin, falls into this latter category. He is very concerned things will not need well where the Bitcoin price is concerned.
Even the recent Bitcoin price surge cannot convince Colas. It is still a long way removed from the all-time high recorded in late 2017. Colas is quick to point out 2017 was a clear bubble which has burst. Due to the recent setback, there are now fewer people interest in buying Bitcoin. This is based on Google Trends, which are not necessarily the most reliable metric to gauge such sentiment.
A decline in Google searches for Bitcoin can mean many different things. Users all over the world read up on cryptocurrency in the past few years. It is only normal this will heavily impact the Google Trends. Even so, it is an interesting trend to keep an eye on. Perhaps the most worrisome sign is the lack of wallet growth. Colas is convinced Bitcoin adoption is slowing down and thus makes for a bad investment.
Is Nick Colas Wrong?
True Bitcoin believers won’t pay much attention to Nick Colas. While his outlook raises interesting points, it’s not exactly new information either. All of these “problem points” have been discussed dozens of times before. So far, Bitcoin has overcome all odds and adversity, and will likely continue to do so.
For investors, it is important to keep an eye on the big picture. Nick Colas only touches upon the short-term changes related to the Bitcoin price. These past six months are a brief snapshot of the history of cryptocurrency. He does not mention how the Bitcoin price is still up quite a bit compared to May 2017. Keeping the long-term picture in mind is mandatory in the cryptocurrency industry.
Despite this information, Nick Colas may not be entirely wrong either. Bitcoin is always a risky investment, but that doesn’t make it less worthwhile. It all depends on what plan individual users have when it comes to the future value of Bitcoin. A lot of things can and will happen to Bitcoin in the years to come. Discussing its price is just a small facet of what cryptocurrency is really all about.
–AltcoinToday.com
Photo via Getty Images.
Source: Newsbtc