Bitcoin which is the largest cryptocurrency by market cap is consistently rising after making lows of around $7500. According to the founder of Pantera Capital, Bitcoin is on its course to make hefty returns for the investors in 2018. This is in stark contrast to the fall in the prices of Bitcoin in the last one month.
Bear market cycles:
According to him, the average bear market cycles in Bitcoin have been around 71 days. Currently, 52 days since the consistent fall of Bitcoin are over. This is the reason why he thinks that Bitcoin would recover sooner than later. Not only is he of the opinion that Bitcoin can reach the previous highs but he believes that Bitcoin would be able to generate a hefty return for the investors.
According to him, the future regulations which the countries are drying up against Bitcoin would end up benefiting the Bitcoin. Any kind of regulatory framework will make the Bitcoin market much more transparent. This would ensure that people are able to invest more in Bitcoin.
Furthermore, once the rules and regulations are in place, it would be easier for the institutional investors to invest in Bitcoin. This would automatically increase the institutional holding which would ensure that the demand for in Bitcoin increases further. He is of the opinion that the institutional holding in Bitcoins is actually pretty less. Owing to this very reason, its an encouragement to the institutional holders to invest in Bitcoins and this would increase the prices of Bitcoins significantly.
He also thinks that the regulations which are being brought on by US related to cryptocurrency, as well as ICO’s, are a welcome move as it would protect the interest of the investors. It might slow down the growth of the cryptocurrency market but in the longer term, it is highly positive as it would bring in more trust and credibility in the cryptocurrency market.
It remains to be seen whether these moves benefit the cryptocurrency market, as well as the bear market in Bitcoin is about to end soon or not. However, going by the previous history, 60% to 70% correction in Bitcoins is nothing unheard of. This is the reason why if Bitcoin goes ahead and hits a new high, it would not actually surprise anyone as it has done so in the past as well. Many of the investors, in fact, are retaining their holdings on the same hope that it would rebound once again and rise above the previous highs.
Bitcoin could grow up to 40 times its current price: $320,000
Bitcoin Will Hit $320,000: Winkelvoss Twins
Bitcoin, the world’s largest cryptocurrency by market capitalization, could grow up to 40 times its current price, or about $320,000 each, according to Cameron Winklevoss, half of the famous twins known for their role in the creation of Mark Zuckerberg’s Facebook Inc. (FB).
At a CNBC-hosted interview at the Milken Institute MENA Summit, Cameron suggested that the cryptocurrency is better than gold across the board when looking at the desirable properties of money.
“And what makes gold gold? Scarcity. Bitcoin is actually fixed in supply so it’s better than scarce … it’s more portable, its fungible, it’s more durable. It sort of equals a better gold across the board,” said Cameron.
Crypto Skeptics Suffer from a ‘Failure of the Imagination’ According to First Bitcoin Billionaires
He highlighted the digital currency’s recent sell-off as a buying opportunity. While early last week bitcoin’s market value was around $200 billion, it sank to $100 billion during this week’s larger market plunge, slightly recovering toward the end of a week to a value of around $140 billion. At its lowest point this week, the Olympic rower and entrepreneur said investors could be looking at “a potential appreciation of 30 to 40 times because you look at the gold market today, it’s a $7 trillion market. And so a lot of people are starting to see that, they recognize the store of value properties. So we think regardless of the price moves in the last few weeks, it’s still a very underappreciated asset.”
At the time of Cameron’s comments, a 40-times price appreciation reflected a bitcoin market cap of about $4 trillion. The twin mentioned that he and his brother Tyler were taking a 10- to 20-year outlook. /
The crypto bulls, credited with becoming the first bitcoin billionaires, took a jab at critics including legendary investor and Berkshire Hathaway Inc. (BRK.A) head Warren Buffett and JPMorgan Chase & Co. CEO Jamie Dimon. Tyler blamed skepticism on a “failure of the imagination,” going on to describe a world where autonomous cars and other devices make micro payments to each other via digital currencies. (See also: Crypto, Cannabis, FOMO Drive New Investor Inflow.