The erratic nature of cryptocurrencies means a never-ending rollercoaster of boom and bust.
For those who choose to ride the wave, experts are saying Bitcoin will surge to $50,000 in 2018.
Cryptocurrencies are predicted to skyrocket to $1 trillion this year, following a recent violent sell-off across digital coins.
Bitcoin has seen a huge fall in recent days, dropping below $6,000 for the first time since mid-November and on Wednesday, it was trading above the $7,000 level as the cryptocurrency market stabilised.
Thomas Glucksmann, head of APAC business development at cryptocurrency exchange Gatecoin, told CNBC:
Increasing regulatory recognition of cryptocurrency exchanges, the entrance of institutional capital and major technology developments will contribute to the market’s rebound and push cryptocurrency prices to all new highs this year.
There’s no reason why we couldn’t see bitcoin pushing $50,000 by December.
One possible appetizer for the bulls, or the catalyst for the recovery, will be the release of another cryptocurrency backed instrument listed on a major exchange.
There are several candidates in the pipeline, it’s only a matter of time until we have a cryptocurrency backed ETF (exchange-traded fund).
When your friend gets into bitcoin:
[ooyala player_id=”5df2ff5a35d24237905833bd032cd5d8″ auto=”true” width=”1280″ height=”720″ pcode=”twa2oyOnjiGwU8-cvdRQbrVTiR2l” code=”h2ZHQ3ZTE6yCKJ78VKN_XXRAfGHMUpE7″]
Despite the predicted spike, a crypto expert told us Bitcoin might not have the best future.
An anonymous expert, who’s made a fortune in the coin and is now donating a huge chunk of their wealth to worthy charities, has resolutely warned against putting money in Bitcoin for a long-term investment.
They told UNILAD:
I can’t directly answer [which coin to invest in], but I want to caution against investing without understanding the risks. Bitcoin has crashed by almost 90 per cent before and it’s bound to crash again.
Cryptocurrency is not a piñata of free growth. I believe we’re in a bubble and many people who’ve invested recently (or invest from now on, at these prices) will be facing substantial losses.
The expert, who has set up the Pineapple Fund with their fortune, thinks anyone who plans to invest money in Bitcoin for a long-term holding, stands to lose a lot of money.
Every single time we’ve seen a meteoric rise in the valuation of cryptocurrency, there’s been a corresponding bloodshed.
This time may be different, or it may not be?
It’s a risky game, but for some, it’s really paid off.