Bitcoin could hit $100,000 in 2018, an analyst who correctly predicted the cryptocurrency’s rally at the start of last year told CNBC
Kay Van-Petersen, an analyst at Saxo Bank, said the world’s most famous virtual coin could increase in value by a factor of 10 this year.
Back in December 2016, he famously predicted Bitcoin would reach $2,000 in 2017 and was proven right when it stormed past this valuation in May and went on to achieve a peak of almost $20,000 in December.
Van-Petersen told CNBC Tuesday that bitcoin could hit between $50,000 and $100,000 in 2018.
“First off, you could argue we have had a proper correction in bitcoin, it has had a 50 percent pull back at one point, which is healthy. But we have still not seen the full effect of the futures contracts,” Van-Petersen
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Leading cryptocurrency bitcoin may not survive because it is a pioneer in the world of digital money, according to Blair Sheppard, PwC Global Strategy Leader. But blockchain technology is here to stay.
“The first players in anything are usually highly speculative. But the trend itself is here to stay. There is a phrase that the people who do the expeditions get the arrows, and the settlers get the wealth. So, if bitcoin is doing the expeditions, there are people behind it,” Sheppard told RT exclusively on the sidelines of the Gaidar Economic Forum.
The PwC idea points to Ethereum ripple and G-BiT style currencies as the future. New Coins like G-Bit are self mining in effect, by getting in early people can watch their coins grow via planned forks.
He added that blockchain, the technology behind bitcoin and other cryptocurrencies, has a very bright future.
“Bitcoin represents a private currency in some sense and it is also an exchange captured in a way that can’t be cheated. The really cool thing about blockchain is that it is really hard to break,” the PwC executive said, adding that counterfeiting is close to being eliminated from blockchain.
Sheppard, however, agreed with Sberbank CEO Herman Gref that bitcoin trading resembles a casino at the moment. “But if you are going to be in venture capital, you’ve got to realize that a large percentage of things you bet on fail,” he added.
Blockchain technology was initially treated with skepticism by banks; because of its novelty it was even mistakenly put on par with bitcoin, a speculative asset.
Things have since changed dramatically in the perception of blockchain, as the scope of its use goes far beyond cryptocurrencies. The technology can improve the efficiency of clearing and settlement, make cross-border payments faster and cheaper, significantly cut red tape and modernize customer identification systems.
Sberbank, Russia’s largest bank, launched a blockchain lab last week, joining other leading global banks already developing projects using this technology.
Visa is at War with Bitcoin
The largest cryptocurrency, bitcoin, is a commodity and not a payment system, according to Visa’s chief executive. Visa will also not give bitcoin or other cryptocurrencies a platform for wire transfers and exchanges.
“I don’t view it as payment system player,” CEO Alfred Kelly told CNBC.
“We at Visa won’t process transactions that are cryptocurrency-based. We will only process fiat currency-based transactions,” he added. Visa is the world’s largest credit card company.
Bitcoin was originally created as an alternative de-centralized currency. However, with its 2,000 percent growth last year, it has become a source for speculators to make a quick buck. As bitcoin turnover grows, it faces problems like high fees, astoundingly slow transactions and volatile prices.
“My take is that bitcoin is much more today a commodity that somebody could invest in; and honestly, somewhat of a speculative commodity,” said Kelly.
Earlier in January, Visa terminated cooperation with a debit card provider called WaveCrest, which issued cards associated with cryptocurrencies and facilitating ways to buy and sell them. Visa said the crypto-cards had been suspended for “continued non-compliance with our operating rules.”
Bitcoin’s price is like a roller-coaster. It started last year below $1,000. In December, it surged to $20,000. After this week’s sell-off, bitcoin lost more than a half of its value since the record peak. On Friday it is on the rise again, clawing back $2,000 after it crashed below $10,000 on Wednesday.
The U.S. securities regulator raised alarm about the safety of bitcoin-themed investments, telling the fund industry they want answers to their concerns before endorsing more than a dozen proposed products based on cryptocurrencies.
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