12.11.2019

Is Bitcoin a Currency or a Commodity?

Bitcoin prices are destined to hit $10,000 in the very near future, according to multiple prognosticators up to and including Jose Canseco.

Bitcoin Heading Over $10,000

A growing number of prominent voices have argued that the world’s most valuable cryptocurrency is about to get richer.

baseball legend Jose Canseco recently tweeted that the original blockchain currency will hit $10k by New Year’s Eve. The former MLB star also said that, by 2018, “blockchain will become mainstream knowledge understood by moron level and above”.

Former Fortress Investment Group manager Mike Novogratz has also issued a bold prediction about the future of bitcoin. In an interview with Bloomberg, Novogratz said he believe bitcoin will reach the much coveted $10,000 level before the end of the year. He likened cryptocurrency to gold in his explanation of why prices were destined to hit five figures.

Bitcoin is similar to digital gold in that “gold has value solely because people say it has value; bitcoin is built on an amazing technology, there’s a limited supply of it,” he said Tuesday on Bloomberg. “This whole revolution came out of a breakdown in trust in the 2008 crisis.”

“We’re in the second or third inning,” he added. “Because prices have moved so far people are nervous. You made a whole lot of money, there’s news, so you want to book your profit and get out.”

This sentiment is also shared by other market participants tracking the cryptocurrency market. Last month, CNBC ran a survey that showed 49% of respondents believe bitcoin will climb above $10,000. Although CNBC ran an unscientific online survey, 23,118 people participated.

But even Novogratz has been taken aback by the extent of bitcoin’s rally. Just last month, he forecast a $10,000 price tag in six to ten months, not the end of the year.

Meteoric Rise

Bitcoin has been on a tear the past 52 weeks, with prices climbing more than 1,000%. The BTC/USD exchange rate referenced by the global cryptocurrency market climbed to new highs this week. Prices were last seen around $8,262, or roughly $100 below record levels.

At current values, bitcoin is capitalized at $138 billion, according to CoinMarketCap.

Bitcoin was down more than 5% earlier in the day on news that $31 million was stolen from Tether, another high profile cryptocurrency.

Greater mainstream adoption, favorable regulation in some countries and growing institutional interest have all combined to give bitcoin its most bullish year yet. These forces continue to underpin a rally in bitcoin that has simply failed to let up. This has also extended into other cryptocurrenices as investors look to diversify their holdings in non-fiat payment systems. These include Ethereum, Litecoin and Bitcoin Cash, among others.

It remains to be seen whether bitcoin and other cryptos can continue their record-setting streak or whether a broad correction is in the works. There are plenty of critics arguing that the digital currency system is overextended on speculation, and that a massive market collapse is coming.

Spread the love
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  

Leave a Reply

Your email address will not be published. Required fields are marked *