A cryptocurrency entrepreneur has said that bitcoin will reach $60,000 in 2018, but believes that the currency will drop to $5,000 as well.
Julian Hosp, co-founder and president of TenX, a firm that makes it easier for people to spend their digital currencies, said to CNBC’s ‘Squawk Box,’ that:
I think we’re going to see bitcoin hitting the $60,000 dollar mark, but I also think we’re going to see bitcoin hitting the $5,000 dollar mark.
However, he added:
Which one is going to happen first?
His comments come at a time when the cryptocurrency has seen new record highs, reaching nearly $20,000 on the 17th December before dipping to below $12,000 on the 22nd December.
Since then bitcoin has regained some ground. According to CoinMarketCap, it is currently trading at $15,780. Hosp says, though, that this dip in price has been a welcome sight for many investors, adding:
This dip for us was very, very healthy, and some of us have used it to buy a little bit more because suddenly we had 40-45 percent discount to all-time highs.
Interestingly, while he remains confident in where the price of bitcoin will reach in 2018, he believes that it will drop in value again too.
I don’t think right now, but I think in the long run, we will always see a little bit of an up move, and then a dip down.
Mike Novogratz, former hedge fund manager and a bitcoin bull, is an individual who recently said that the price of the digital currency would drop to $8,000. According to Novogratz, he said in a report that he was shelving plans to launch his hedge fund due to several obstacles. However, the former Fortress manager still believes in the currency, projecting a $40,000 price for bitcoin in 2018.
Whereas, many naysayers of the digital currency have argued that it is in a bubble, Hosp doesn’t think it will be a bubble that will burst resulting in people losing all their money. Instead, he said:
I think it’s going to be that all the coins and all the assets with very little use or value are going to get sorted out.
I see bitcoin more as digital gold rather than a currency that is going to be used on a daily basis.