Crypto currency Experts predicts a continued increase in value of bitcoin. Fortress Investment Group hedge fund manager turned crypto currency investor Mike Novogratz in a recent interview said the rise in value of bitcoin isn’t likely to stop any time soon and it gona hit $10k by April 2018.
“I’m pretty confident to say it’s going higher,” he said on Wednesday, adding that “It would not surprise me if in the next six to 10 months we’re over $10k.” Just last week, other experts predicted bitcoin prices would reach $6,000 by the end of the year, though still warning against volatility.
Indeed, many have pointed out that cryptocurrencies tend to be unstable. For Novogratz, however, this volatility is normal. “Yes, it’s a bubble, it’s going to be one of the great manias of all time,” he explained. “Bitcoin happens to be the bellwether of this entire decentralized revolution, so it’s the easiest way people get gain exposure to it. Things like Ethereum I think will be the public utility of this new space.” This block chain revolution, he added, would “change the way we live.”
Despite fears of a dip in prices due to Russia’s crypto currency ban, recent numbers show that bitcoin prices have stayed at the upper $4,000 mark after closing at another all-time high on Monday. The Russian ban comes after China and South Korea made similar moves against crypto currencies and initial coin offerings (ICOs).
A price of $10,000 per Bitcoin would put the entire market cap at close to 180 billion, which is a significant increase compared to the current $6.63 billion. Here are the few reasons why bitcoin price surges
- Research – People are simply asking themselves “what is Bitcoin? ” and then following up on that by doing some pretty basic research. Even if people don’t fully understand its utility at first, you can be sure that they will buy some just because it’s appreciating.
- Demonetization – Governments around the world are working to create cashless societies. Indian and Australian government are going through a series of demonetization efforts that are driving the people to find alternative mechanisms for value storage and Bitcoin seems to be finding itself primarily used as a safe haven asset.
- Hyperinflation – Brazil, Argentina, Venezuela, Mexico and other failing governments around the world are devaluing currencies at an alarming rate. Don’t expect the people to just stand by while their life savings is destroyed by government corruption.
- Growing Infrastructure – New startups and apps are being launched all the time to help further build the growing infrastructure of not only bitcoin but of the entire crypto space. In 3 years from now, the bitcoin infrastructure is going to be vastly more advanced than it is today since the spread of technology is only speeding up.
- Lack of Trust – The established legacy banking industry is losing its hold on the minds of people. People are realizing that the banks only have their own interests at hand and that technology is now able to provide a better service for less money. The global economy is basically failing and people are looking for a safe haven to store their wealth.
- Politicians and governments are realizing their inability to stop it. Some of these politicians are actually trying to find ways to create an economy that enables blockchain technology so as to set their countries for immense wealth and economic advantage.