Cryptocurrencies are trending big right now, with everyone predicting how high coins and currencies will go within the next few years. Investing in crypto, however, undoubtedly holds more risk as nobody can possibly know what will happen next or which minute event will tilt the balance for good. Bitcoin has always had a volatile nature, with prices going up and down on a nearly daily basis. But one of the most interesting things about bitcoin is how much traction it had gained in recent years among serious investors and financial institutions, leading many to believe it’s the next big thing in finance.
Bitcoin has been the best performing asset class of 2020, with highs continuing into the first few months of 2021.
However, bitcoin experienced big losses on Wednesday as the crypto’s value dropped to $30,000 at one point, for the first time in more than three months.
A dramatic pullback was seen within bitcoin investment and other crypto coins on May 19 following a host of negative headlines and catalytic action from Tesla and SpaceX CEO Elon Musk.
Mr Musk announced on May 13 his car manufacturing company, Tesla, would no longer accept bitcoin as payment for goods amid revelations the data mining process used within the crypto is harmful to the environment.
While Mr Musk’s statement definitely didn’t help matters, arguably the biggest gunshot came from the Chinese government who introduced a new round of regulations against the coin.
The CEO did, however, suggest that Tesla will not be selling its currently bitcoin stash, using emojis on Twitter to indicate the company has ‘diamond hands’.
The recent slide is a reversal from the dramatic rise that began in the latter of half of 2020.
The price of bitcoin is, however, still up more than 200 percent than September last year, the product of a dramatic bull rally sparked by mainstream financial institutions appearing to embrace the coin.
Longtime bitcoin bull Mike Novogratz said on Wednesday: “A lot more people own crypto.
“Crypto has seeped into pockets all over our society and you had a confluence of events – a combination of Tax Day, Elon Musk tweets, whatnot, where you started breaking down the positivity in the price action, and now we’ve got a liquidation event.”
Additionally, a new report from banking giant JP Morgan said that, based on future contracts, institutional investors appeared to be moving away from bitcoin and back in the direction of gold.
Bitcoin is often touted as a potential replacement for the traditional gold as a store of value, but that is yet to be seen.
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What will bitcoin be worth in 2030?
In terms of what bitcoin will be worth nine years from now, analysts and forecasters have differing opinions.
A poll by Genesis Mining conducted in December 2020 gave little insight into what common bitcoin predictions look like for 2030.
The survey found 65.8 percent of respondents are bullish for the long-term future of the digital coin, while 66.2 percent believe bitcoin is a far better long-term investment than the US dollar (USD).
The investors, arguably, are the most important predictors of price as they are the ones who drive value up and down.
However, when it comes to how much bitcoin will be worth there was real division among respondents.
Just 4.8 percent believe it has the potential to be worth more than $500,000 (£354,000), while 5.5 percent estimate a range between $100,000 (£70,804) and $50,0000. (£35,404)
All-in-all, just 18.6 percent forecast bitcoin’s valuation will exceed $50,000 (£35,404), in contrast with 21.8 percent who believe the crypto’s price will plummet to below $5,000 (£3,540).
With bitcoin’s crash on Wednesday and the overall volatility of not only the coin but the market in general, it’s very difficult to predict what its worth will be later down the line.