Bitcoin continues to gain in popularity, but many people in the financial world are concerned about the large price swings.
Insider spoke to four crypto experts about the future of the digital currency.
The experts also tell you what newcomers to the crypto market should know before putting money into it.
Bitcoin is rapidly gaining in popularity as more and more people see the cryptocurrency as a suitable medium of exchange or for saving.
But the digital currency also has clear drawbacks. For example, many people in the financial world are concerned about the enormous price fluctuations and super investor Warren Buffett even calls bitcoin and other crypto coins “worthless”. Crypto price predictions Indonesia is popular.
The discussion about volatility and the future of bitcoin has become heated, partly due to the introduction of a Chinese digital currency. Insider spoke to four experts from the crypto world about their expectations for the future.
Brock Pierce, the former star of “Mighty Ducks”, is now a crypto entrepreneur
Partly because of the monetary policy of the US government, Pierce is full of optimism about where bitcoin will be in ten years.
“After the rise of bitcoin in the past six months (market value to over 1,000 billion dollars), I am very optimistic about the further growth of this technology. Our government’s poor monetary policy (printing money, excessive spending, etc…) only works in favor of bitcoin – and I don’t see any signs of slowing growth over the past year. ”
According to Pierce, the crypto market has changed dramatically since its emergence. But the main appeal of crypto coins remains that “every transaction is recorded in a public ledger, making fraud virtually impossible”. He therefore recommends that anyone who has not yet done so “urges them to quickly research bitcoin and blockchain technology”.
James Ledbetter, editor and publisher of the fintech newsletter FIN
Regarding the fear of the effect that the new digital yuan introduced by China may have on bitcoin, Ledbetter says: “In general, you can see the development of central bank digital currencies (CBDCs) as encroaching on bitcoin’s territory. If the digital yuan is successful, some people in China and other countries will be less inclined to invest in bitcoins. ” Crypto prediction Portugal is popular.
Regarding the new wave of young people who invest in crypto coins, he says: “I am shocked when people get into bitcoin, because they consciously or not think that the market will never go down.”
Partly for this reason, Ledbetter states that people “should never invest more than they can afford to lose”.
Joey Krug, investor at Pantera Capital
The reason young people invest in bitcoin is that they generally take more investment risk than other groups, says Krug.
Young people are seeing the US government print thousands of billions of dollars for stimulus measures, threatening to undermine the dollar, Krug explains. In the meantime, they have an increasing sense that the possibilities for socio-economic progress are becoming more limited. “As a result, many more young people today own bitcoin than gold. And that trend will no longer be reversed, ”he says.
Krug tells newcomers to the crypto market that there are three things to keep in mind: “First, you have to be aware that bitcoin can go down 70 percent. Second, you should know that it can go up much faster too. And third – in light of the foregoing two things – you need to make an investment that allows you to hold on to bitcoin without getting sleepless nights from any short-term price swings ”.
“If you buy too many bitcoins compared to other investments, you will inevitably panic and start selling if the currency falls. But investing in bitcoin is a long-term process and not suitable for people with a weak heart. ”
Token Bay Capital founder Lucy Gazmararian
Today, bitcoin is increasingly seen as ‘digital gold’ because of its scarcity. This is because there will never be more than 21 million bitcoins, ”says Gazmararian.
She believes that bitcoin could become the leading way of storing value in the long run. “There are signs that this is already happening with large companies that are starting to put bitcoin on the balance sheet.”
According to Gazmararian, central bank digital coins, cryptocurrencies and other digital tokens will merge seamlessly in the futureworking in the digital economy.
She believes two things are essential for potential crypto investors: “Develop your own vision of this new technology and find out why you are investing in it,” she explains.
She does warn that there are “several risks associated with owning bitcoins,” because it is “a completely virtual currency that can be stolen from your digital wallet if malicious people get hold of your private key.”