Financial experts right now are split on the direction of bitcoin, with some expecting it to rise as high as $30,000 while others thinking it could plummet to $1,000.
Marshall Taplits, who is the Chief Strategy Officer for a company called NYNJA, says that it is difficult to speculate on bitcoin’s price, but he believes that bitcoin is definitely trending upward. There will always be correections, he says, but that $30,000 is a smart bet.
Daniel Worsley, who is the chief operating officer of a firm called LocalCoinSwap, is also bullish about bitcoin. He insists that no other computer network has been tested the way bitcoin’s blockchain has been tested. The world, he says, has thrown everything it has against it and it is still functioning well. Worsely believes that bitcoin could reach $20,000 this year alone. He says that just a little positive news could send the price of the currency once again soaring.
Not everyone, though, is so bullish on bitcoin. These experts believe that bitcoin is nothing but a fad, and that it will fall just as all fads do, when falling demand meets rising supply. In the case of bitcoin, they believe the rising supply is the steadily increasing number of alternative cryptocurrencies. These people think that bitcoin will eventually fall to $1,000. They base this $1,000 number on what some have estimated is Bitcoin’s inherent value, which has been calculated at $1,142.
Christos Giannikos, who is a professor of Finance at Baruch College in New York, is one of those who believe that bitcoin will eventually fall to $1,000. Though he says that it could take a long time for bitcoin to fall to its inherent value. This, he says, is because, in the same way irrational behavior drives bubbles, it prevents assets from being priced at their proper values.
Bitcoin bears believe that any number of catalysts could send bitcoin tumbling down to its inherent value. One such catalyst could be a scandal similar to Enron or Lehman Brothers. While another catalyst could be the rising of interest rates by central bankers, which bears believe would deflate demand for bitcoin.
The one thing that both bitcoin bulls and bears can seem to agree on is that bitcoin’s price volatility will continue for the foreseeable future.