Many believe that the leading cryptocurrency, Bitcoin, is the future of money while others think it’s just a scam. Supporters of Bitcoin claim that the price of the digital currency will touch the sky while sceptics believe that all cryptocurrencies including Bitcoin will end up “worthless.”
But what should you consider when it comes to Bitcoin price predictions?
Tim Draper’s Views
Tim Draper is one of the most notable investors in Bitcoin and Bitcoin startups. According to the recent statement of Draper, he believes that the price of Bitcoin will hit $250,000 in 2022. Draper’s Bitcoin price prediction in 2014 was correct, as he believed that it would hit the $10,000 mark by 2017.
You can find a list of financial professionals who called Bitcoin a scam and claimed that it doesn’t have any worth. In simple words, a massive percentage of Bitcoin sceptics are those individuals who have a financial incentive to see the leading cryptocurrency [Bitcoin] fail.
Stefan Hofrichter — Bitcoin Prediction
Stefan Hofrichter, head of global economics and strategy at Allianz Global Advisor has recently said:
“[Bitcoin’s] intrinsic value must be zero.”
It must be noted that Allianz Global Advisers is one of the biggest investment houses in the world and doesn’t offer any crypto investments to its customers. The demand for cryptocurrency investments is growing day by day, though Allianz Global Advisers still needs to validate why it doesn’t offer any products in this area. There’s a clear encouragement for Hofrichter as well as his research team to settle that ‘bitcoin is an asset bubble’ – not a smart investment. Therefore, just like the price prediction of Draper, Hofrichter’s view on the Bitcoin’s future value has to be taken as with scepticism.
Impact of Politics on Bitcoin Price
The recent comments of Donald Trump on Twitter are monitored by traders, globally – and they can affect the stock and currency market. Last month, Amazon’s stock declined over 8% in three sessions – after the president of America, Donald Trump tweeted about Kim Jong-un.
What does Tom Lee have to Say about Bitcoin’s Future?
When we talk about Bitcoin future prediction, in actual fact, no one has any idea about the future price of Bitcoin. Nothing can answer what will be the price of Bitcoin in future. It’s only time that will tell us at what level the price Bitcoin will trade in 3-10 years. The Managing Partner and Head of Research at Fundstrat Global Advisors, Tom Lee, has been predicting the Bitcoin price for quite a few years. According to his prediction, the price of Bitcoin will hit $91,000 by March 2020.
Back in October, Tom Lee told Business Insider in an interview:
“I think this next generation of young people views bitcoin as their store of value. And if it captures 5 percent of the gold market, it’s worth at least $25,000 per unit.”
The founder of Standpoint Research, Ronnie Moas, has predicted that Bitcoin price will hit $28,000 in 2018. He believes that the price of Bitcoin will ultimately upsurge to $300,000 – $400,000. Moas price prediction for Bitcoin is based on the limited supply of Bitcoin — facing unlimited demand.
“I don’t know how much gold there is in the ground, but I know how much bitcoin there is, and in two years there will be 300 million people in the world trying to get their hands on a few million Bitcoin. This mind-boggling supply and demand imbalance is what is going to drive the price higher.”
There’s no doubt, anyone can contend that Fundstrat Global Partners benefits from the outspoken views of Lee on cryptocurrency estimations. Though the failure and the success of his company don’t depend on the ‘future performance’ of cryptos including Bitcoin — same goes for Ronnie Moas and his company.
When it comes to price prediction of Bitcoin, the best people that you should listen to are independent analysts. Their price targets are not only based on the exhaustive analysis but their main incentive is to be right with their predictions because that is exactly what they are getting paid for.
The hype of cryptocurrencies has increased dramatically over the past few years. Especially after the introduction of Bitcoin, back in 2009.
Bitcoin is the most popular cryptocurrency. The currency has ruled the crypto world undisputedly for many years. Even now, Bitcoin sits on top of the crypto pile. However, it is not the only king in the jungle anymore. The leading cryptocurrency is now facing a growing competition from other cryptocurrencies, Litecoin being one of the closest rivals of Bitcoin.
In this article, we have discussed the major differences between Bitcoin and Litecoin. Hopefully, you will be able to get a good idea about both the cryptocurrencies after reading this.
Litecoin is one of the many names that received a lot of positive responses from the market. It was launched in 2011 by its creator Charles Gee – with the aim of becoming the “silver” to Bitcoin’s “gold”. Like Bitcoin, Litecoin is also generated by mining. The motivation behind its creation was to improve upon Bitcoin.
In 2009, Satoshi Nakamoto launched Bitcoin as the world’s first cryptocurrency. It has no central authority and anyone can access it from anywhere. Bitcoins are ‘mined’, using computing power in a global network and are used to buy things electronically.
What is The Difference Between Bitcoin and Litecoin?
There isn’t just one, but many differences between Bitcoin and Litecoin. The major differences are as follows:
- There are more litecoins available in the market, i.e. 84 million than bitcoins as Bitcoin will never exceed the limit of 21 million.
- Due to the limit of bitcoins available, it is of much higher value as compared to Litecoin.
- Litecoin has a much faster speed of transaction; only 2.5 minutes, unlike Bitcoin which takes around 10 minutes right now.
- Both employ different algorithms, Bitcoin uses the longstanding SHA-256 algorithm, unlike Litecoin which makes use of a new algorithm known as Scrypt.
- Another major difference is that Litecoin is a cheaper option for miners than Bitcoin. The former only requires a normal computer and an internet connection to begin mining, whereas the latter requires maximum computing power which is out-of-reach for an everyday user.
- Bitcoin is relatively slow in confirming transactions, while Litecoin accepts a higher number of transactions due to its higher volume of blocks.
So, What to Choose – Bitcoin or Litecoin?
We know that both the cryptocurrencies have their own set of pros and cons. They even have several resemblances. No doubt, they are both accepted very positively all across the globe. However, the final choice is yours.
Bitcoin is getting more and more popular each day. In 2011, you needed to write to a man from another country to order a pizza for you with Bitcoins, but now you can do things similar to that in various major cities. In a few countries like the Netherlands, the whole towns are Bitcoin-accommodating, (for example, Arnhem, regularly called ‘the Bitcoin city’).
This growing popularity of Bitcoin has caught attention of many people, and thus we see so many people asking how to earn bitcoin.
The best and easiest way to earn Bitcoin is through mining. There are several mining pool which one can join in order to earn their own bitcoin. Apart from that, it can also be earned through carrying out certain tasks, or accepting bitcoin payments if you own a business. In short, Bitcoin can be earned in as many ways as real money. So, next time someone asks how to earn bitcoins, you know what to tell them.
Bunz Trading Zone is a Canadian online trading and barter platform. According to the local paper “The Globe and Mail,” the platform is launching its own cryptocurrency under the name of BTZ. BTZ is pronounced as “bitz” and as it’s reported, BTZ is going to be the first Canadian cryptocurrency to launch to ‘an already-established community’ and will become available to 200,000 users of the company from 9th April.
Bunz Trading Zone
The Bunz community grew rapidly after its launch. Bunz was basically launched as a private Facebook group in 2013 by Emily Bitze (fashion designer) for exchanging unused things with friends and after the launch, it expanded outside Facebook and Toronto. The Bunz website, plus app, were launched two years ago.
According to the Globe and Mail reports, the platform expanded rapidly due to its minimalism and the absence of cash. Though, the currency’s absence based on barter platform, has offered one of the biggest challenges to Bunz as well. Without an exchange of currency, there won’t be an evident income stream.
Bunz Users Will Receive 1,000 BTZ
After this latest cryptocurrency news, the project’s blog showed details that all Bunz users will be receiving 1,000 BTZ respectively, which can be traded for goods and facilities and can be exchanged amid the members of the community. Basically, the 1,000 BTZ will have the value of about ‘three coffees’. Sascha Mojtahedi, who is the CEO Bunz Trading Zone says, that the company has planned a revenue model, however, he refused to say anything about what it is or when it is going to be introduced.
Mojtahedi said that the main purpose of the BTZ launch is to grab the attention of more users to the platform, as he stated:
“You have to be able to reward people with cryptocurrency that they’ve earned as a result of their passive involvement in the network and then enable them to use it with their peers and merchants. It gives us the room to create new models that people may not have thought of.”
Also, at the beginning of this year, known as an e-commerce giant of Japan, Rakuten announced its plans to issue its own cryptocurrency. Hiroshi Mikitani (CEO) said that it’s going to be a borderless currency.
According to some financial observers the future of cryptocurrency hedge fund could face a harsh and violent transformation during 2018. It has also been predicted that 10 percent of these hedge funds could shutdown during the next few months. Even Bloomberg reported recently that the continuous decrease in the prices of cryptocurrency assets have played a critical role in the slowdown of hedge funds. This prediction seems to be true as far as the ratio of crypto hedge funds opening is concerned which decreased continuously during the current year as compared to their launch rate in 2017 which was over 170. The situation has totally changed now as during the first three months of 2018 only 20 new players showed their existence on the scenario and shutting down of previous funds also continues.
Reasons For This Downfall
According to latest hedge fund news the main reason for all this downfall can be the significant reduction in price of cryptocurrency this year, this decrease in price of automatically affected the relative hedge funds resulting in losses and closings of their doors for 2018. The ultimate decrease in price of Bitcoin and other cryptocurrencies has not been good for the health of hedge fund business. Regulatory uncertainty has also played its role in all this scenario.
Alpha Protocol is one of the recently closed funds which directly cited “potential regulatory and market risks” as main reasons for its decision to refund deposits. A statement was issued by its co-founder that new capital rate had slowed down and it was getting difficult to survive even for a high profile fund like Alpha Protocol.
Which Crypto Funds Were Affected Most?
Among those companies which had to freeze their operations, Crowd Crypto Fund and Alpha Protocol are on the top of the list. It has been reported that a total of 9 hedge funds revolving around cryptocurrency were shut down since December 2017. In addition to the shutdown of various funds, some of the investors have reverted to their previous investment plans which proved to be more secure than the crypto based hedge funds.
Alongwith unsure market health, regulatory uncertainty was also responsible for this downfall. Rumours have been circulating that the US Securities and Exchange Commission is fully prepared to check approximately 100 hedge funds in the near future while there are still more than 200 active hedge funds in operation.
Whatever the reason may be, all that discussion means that the cryptocurrency hedge fund business must evolve itself in order to compete with the regulatory uncertainty lying ahead.