Bitcoin to Climb to $5,000; Tech Leaders Say Fork May Increase Volatility

An independent stock research analyst has said that the price of bitcoin will increase to $5,000, ethereum will double to $400 and litecoin will jump up to $80 from $40 by 2018.

Ronnie Moas, Standpoint Research founder, made his predictions in his report on digital currencies – the first two parts of the 122-page report were recently published – where he wrote:

“In my view, the genie is out of the bottle, and cryptocurrencies will continue to rise and take market share away from stocks, other precious metals, bonds and currencies.”

He added:

“I think investors should take a shot on this and hold for a few years. If you lose a few bucks, at least you took a shot. In life, you miss every shot that you do not take. It will probably be more upsetting to watch it (from the sidelines) go up another 1,000%.”

According to Moas, bitcoin will rise to $5,000 while the second most popular digital currency, ethereum, will double its value to $400. Litecoin, currently ranked number five, behind ripple and bitcoin cash, will increase its price to $80.

These predictions were made before the launch of the newest coin on the block, bitcoin cash, so it’s not clear where his position lies with that digital currency.

Moas, however, states that he has bought 10 of the top twenty digital currencies by market capitalisation. This is the first time he has done so and is confident as to where they are going.

He adds:

“In my view, 10-15 years from now, the charts on a few of the top 20 names will look like the Amazon, Apple, Tesla, Facebook, Netflix and Goggle charts look today.”

In July, Moas said that he expected the price of bitcoin to increase to $5,000 ‘in a few months.’ He also mentioned that had recently bought bitcoin, ethereum and litecoin.

Speaking in an interview at the time, he said:

“$5,000 could happen in a few months. It’s only starting to gain traction right now. It’s starting to spread like wildfire right now.”

He believes that its value will increase to new heights because the amount of bitcoins is capped at 21 million. As the number of bitcoins reaches its limit, it will increase demand, which in turn will push its price up.

At the time of publishing, the price of bitcoin was trading at $2,727, according to CoinMarketCap. The digital currency has seen as 0.49 percent rise over the past 24 hours and a 6.14 percent increase in the last seven days. Its market cap is worth just under $45 billion.

Ethereum is up at $221. Even though it saw a 1.62 percent decline in the last 24 hours, it has risen 8.31 percent over the past seven days. It now has a total cap value of $20.7 billion.

Bitcoin cash, which now takes third place among the top 10 digital currencies, is currently trading at $449. It has risen 5.41 percent within the past 24 hours and 3.14 percent in the last seven days. Its market value is worth $7.4 billion. Its value puts it comfortably in front of ripple with a market value of $6.5 billion and litecoin, which is currently worth $2.2 billion.

Could Bitcoin Split Increase Volatility?

On the 2nd August, the bitcoin community saw a bitcoin fork take place. This created bitcoin cash. Now among the top 10 digital currencies, the new coin has helped to push the total market value up to over $100 billion. Prior to the fork, that figure was resting at $91 billion. It remains to be seen whether the market will continue to rise or if it will return to pre-fork levels.

For the moment, though, the launch of bitcoin cash doesn’t appear to be producing too much impact on the price of bitcoin. Since its launch, the number one digital currency has remained stable. This could be indicative of its growth and market value.

And yet, despite this, some are claiming that the fork could increase volatility and hurt wider adoption.

While the creation of bitcoin cash is designed to increase bitcoin’s transaction capability, Vinny Lingham, CEO of tech startup Civic, believes that it could damage bitcoin’s long-term prospects.

“My biggest concern with bitcoin being split at this point is just the brand dilution of bitcoin.”

He adds because there are two coins it may prove confusing to consumers. This may certainly be true for those who are just entering the digital space and don’t know which coin to use. This in turn could hinder wider adoption efforts.

Ryan Taylor, CEO of Dash Core, said that BCH has some issues:

First, Bitcoin Cash has not solved scaling. It has merely kicked the can down the road with slightly larger blocks, but still lacks a credible technology to scale to massively larger numbers of users. Second, Bitcoin will retain the network of integrated services that make the Bitcoin network useful to businesses and consumers. With no substantial enhancements compared with Bitcoin, Bitcoin Cash is unlikely to be integrated into those same services, given the substantial expense for businesses operating them to do so.

However, while there are people against the split, some are supportive of it.

Anatoliy Knyazev, co-founder of investment company Exante, said this is how digital currencies are supposed to work.

“(This is) decentralized governance in action. Anyone can try to lead and the market will figure it out.”

Many people who are able to access both BTC and BCH may be holding on to the new coins. They may be doing this until they can dump them when their value increases. As a result, experts are saying that traders should hold on to them.

Meanwhile, according to Erik Vooheers, CEO of ShapeShift, he took to Twitter to say he will be dumping his.

In his opinion the SegWit proposal has ‘overwhelming support’ and he will be standing by his support of it. This is true.

At the last check, support for SegWit remains at 100 percent from the mining community. SegWit2x has a support rating of 89.9 percent. Bitcoin Unlimited (BU), another proposal for the bitcoin upgrade, is trailing significantly behind with 35.5 percent support. At this stage it’s unlikely that BU will come to fruition.

For now, all the community can do is wait and see what happens.

Featured image from Shutterstock.

Bestselling Author and Currency Expert Thinks Bitcoin Is In A Bubble Too

Claims that bitcoin is in a bubble are frequent statements that the digital currency community are used to hearing, and now someone new has jumped on board adding their voice to the mill.

Jim Rickards, bestselling author and currency expert, believes that bitcoin is in a bubble.

Why, though, does he think this?

The Currency Wars author said that even though people are investing in bitcoin amidst recent lows with the U.S. dollar, it didn’t mean that investors were losing confidence in it.

He explained:

“If you were losing confidence in the dollar then gold would be going up and it’s not, so it looks like a bubble.”

Rickards, who doesn’t own any bitcoin and is sticking with money, gold and silver, did offer one piece of advice:

“I don’t own any bitcoin, but for those who have a preference for bitcoin, good luck.”

Bitcoin’s Value Rises, Then Drops

During the first half of 2017, the price of bitcoin has produced numerous record all-time highs, tripling its value since the beginning of the year. Its most recent was on the 11 June when it broke the $3,000 barrier for the first time, reaching $3,041.

However, since then digital currencies across the market have fallen. Bitcoin dropped nearly 20 percent on 15 June when it was trading at a low of around $2,200 whereas ethereum, second to bitcoin, had fallen from over $400 to trade at $344.

Naturally, with such a bloodbath taking place within a market that still remains highly volatile, it’s understandable for people to claim that bitcoin is in a bubble and is unlikely to become a viable asset for people to use.

Many, however, state that such price corrections are normal after reaching new highs.

As can be seen from this article from ZeroHedge, it provides an overview of bitcoin’s recent price projections with a look toward what it can produce in the future and possible fallbacks too. This in turn means that the currency could deliver further price increases.

Previous price milestones at $100, $1,000 and, more recently, $3,000 have been reached. All of which then saw subsequent price corrections before bitcoin was able to climb further still to reach a new high.

Will bitcoin reach the projected $10,000 mark? Who knows, but regardless of what the digital currency does or doesn’t achieve, there will be plenty of people claiming that bitcoin is in a bubble.

Why Did Bitcoin’s Price Drop?

It’s believed that the recent price drop in bitcoin is down to the fact that investors are concerned by Chinese miner Bitmain’s plan to initiate a hard fork of bitcoin if a code to upgrade the network is activated this summer.

It’s no secret that bitcoin has issues with its scaling abilities. So much so, that the community is split as to what potential solution would provide the answer to fixing it.

According to Reuters, a hard fork under Bitmain could see the creation of a new bitcoin blockchain, which would produce a new bitcoin currency away from the original one.

As a result, Greg Dwyer, business development manager at digital currency trading platform BitMEX, said that people are worried.

He explained:

“Traders are concerned with what a fork could do to their holdings and most likely now converting to fiat until some clarity about the scaling debate comes to light.”

The solutions that are currently circulating to solve bitcoin’s scaling issues are Bitcoin Unlimited (BU), Segregated Witness (SegWit) and User-Activated Soft Fork (UASF). However, Bitmain has continually spoken against SegWit and UASF, with the founder of Bitmain, Jihan Wu, putting his full support behind BU.

Wu, who is founder of Antpool, which has around 16.6 percent of the network’s global hashrate share, announced in March 2017, that:

“We will switch our entire pool to Bitcoin Unlimited. We can’t tell how the hard fork will play out. We will only know by the time we get there.”

According to Coin.Dance, BU currently has around 41 percent support while SegWit is trailing behind at nearly 31 percent.

Yet, it’s clear that a solution needs to be reached. If bitcoin is to grow and, potentially, increase its value then it needs to solve its scaling issues. In May, it was reported that there were over 220,000 unconfirmed bitcoin transactions waiting to be included on the blockchain.

That number has since fallen to just over 36,000; however, it’s a clear indication that something needs to be done. It’s guaranteed that not everyone will be happy with the results, but at least something will be done where the community can move on from.

Bitcoin Is Not a Viable Asset

That’s according to Morgan Stanley.

The leading global financial services firm has said that digital currencies like bitcoin won’t become a viable currency in the future. Seeing them as more of an investment rather than a payment option, the firm thinks that using bitcoin is a ‘more inconvenient way to pay’ for things instead of using a debit or credit card.

It said:

“Most regulators and investors view cryptocurrencies more as assets than actual currencies. Their values are too volatile and too hard to actually use for payment for most to consider them currencies. Our conversations with some merchants indicate that, while cryptocurrencies might actually be attractive for them to operate their businesses, they find that cryptocurrencies are far too volatile to be used.”

Yet, despite this thinking, there are already plenty of merchants who are expected to implement bitcoin into their payment options before the end of 2017. Japanese sellers are witnessing an increase in the use of the digital currency and are keen not to miss out on potential opportunities in the market. As a result, it’s expected that around 300,000 merchants will introduce bitcoin as a form of payment by the end of the year.

For them, the claim that bitcoin is in a bubble doesn’t appear to ring true. As with anything that goes up, it must come down too, but that, inevitably, also means that it will go back up again. So it seems that’s the case with bitcoin.

Featured image from Flickr via Oleg B.