Bitcoin Could Reach $60,000 Mark in 2018, But Another Crash is Possible
Julian Hosp, a cryptocurrency specialist thinks bitcoin rally isn’t over yet.
“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 firm that wants to make it easier for people to spend virtual currencies.
“The question is though, ‘Which one is it going to hit first?’” he said.
There are some critics and state authorities, who have said the cryptocurrencies are dangerous asset for investment, because nothing supports their value.
Hosp’s prediction is bitcoin’s rally to $45,000 from the current point or $10,000 collapse, which will underscore the volatility of the world’s largest cryptocurrency.
An Extremely Volatile Asset
Bitcoin price crashed last Friday, after raising to a record high of almost $20,000. In a single day bitcoin lost a third of its value, dropping down to $11,000. After crash it gained some of the ground it lost.
Bitcoin traded at $15,185 on Tuesday, according to Coinbase.
“For experts that have been in the market, this was actually a welcome dip,” Hosp told CNBC.
As he pointed, 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.
Hosp has a certain view that bitcoin will have a crash again.
“I don’t think right now, but I think in the long run, we will always see a little bit of an up move, and then a dip down,” he said.
‘Winter’ is coming — eventually
“I don’t think crypto winter is going to come in the next couple of months, but I think if we look down one to two years, there is definitely going to be a big compression in the market,” he said.
“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.
“The money is going to flow into those assets in this cryptocurrency space that really deliver value, have new technology, and are being used by people,” he added.
The company TenX takes fees for a wallet and card to make cryptocurrencies more usable for transactions.
Hosp didn’t share his thoughts on which cryptocurrency has the most longevity, but he did say that compression of the market will reduce their numbers.
“I see bitcoin more as digital gold,” he said, “rather than a currency that is going to be used on a daily basis.”