As bitcoin establishes itself firmly as one of the most followed, if not one of the most traded currencies in recent times, the question on everyone’s lips is what will be the Future Price of Bitcoin. And depending on who you ask, the answer varies from person to person.
If one has to track Bitcoin’s recent past, its volatility seems to have spooked a few of the trading fraternity. After all, it had reached a peak price of over US$ 5000 before falling to the realms of less than US$ 3000 before settling in on a range of US$ 3500-4000 apiece.
This sudden drop was brought about by a slew of bad news for this crypto-currency including a potential crackdown by the Chinese government and the JP Morgan CEO calling it a fraud.
All that said, what are the experts saying about the potential of Bitcoin?
Does Bitcoin have a future and if so, should you invest in it at the current levels?
Or will it crash-land and rob you of all your Bitcoin investments at this stage?
Will it end up being range-bound and not give the kind of returns it has shown so far?
This is what some of the experts are saying.
JP Morgan CEO Jamie Dimon had laid into Bitcoin and said it could end badly in an interview. Here’s that interview:
Jamie Dimon Speaking of the Future of Bitcoin.
On the other hand, there are others who make a much more realistic prediction about the future price of Bitcoin. A Wall Street Strategist Tom Lee, has said Bitcoin will rise to US$ 55,000 in the next five years – which might not be the biggest leap that Bitcoin has seen but still is more than 11 times its current peak.
There are predictions of Bitcoin touching US $20,000 over the next three years or so.
Saxo Bank Analyst Kay Van-Petersen, who had predicted that Bitcoin will touch US$ 2,000 and proven correct by the current run, has now made another bold call. He reckons that in the next 10 years, Bitcoin will touch a whopping US $100,00!
So, while these differing opinions make it difficult to predict the future price of bitcoin, one strategy that can be used if you are a long-term investor is to buy some of this crypto-currency and hold on for a few years. The catch here is what is that ‘some amount’?
It is that amount which you can afford to lose without batting an eyelid. For some, it’s probably 1% of your net worth. For others it could be slightly less or slightly more.
Simple rule of the thumb, if you cannot put your money in Bitcoin or any other cryto-currency without losing sleep over it, avoid putting that much money.