On January 1 of this year, the price of a single bitcoin was just below $4,000 and has exploded in price since then, going higher than $13,000, drifting back down into the $12,000 and high $11k range and is now in the mid-$10s. Since its introduction in 2009, bitcoin has fluctuated wildly in price, from below $1 to more than $20k. Where does it seem to be going now?
Broadcaster, filmmaker, and bitcoin investor Max Keiser recently said that “$100,000 is no sweat.” This bullish investor has, in the past, endorsed the famous price prediction of $1 million by John McAfee. He is basing his current price predictions on his belief that bitcoin has the potential to take market share away from gold.
At the recent Asia Blockchain Summit, Arthur Hayes, CEO and co-founder of BitMEX, said that although volatile, he puts his bitcoin price prediction between the $10,000 and $20,000 levels. While Rob Levy, co-founder of Hxro predicts that bitcoin will reach $35,000 before the end of 2019.
Writing for Forbes, Clem Chambers, CEO of private investors website ADVFN.com predicts that bitcoin will reach the high $20k range before 2019 is over. Chambers also warns, “Make no mistake, this is an incredibly dangerous market. Make sure you are able to sell. Make sure your bitcoin is safe or that the custodian is bullet proof.”
What About These Comparisons to Gold?
It seems that more people involved in crypto are making comparisons between the price of bitcoin and gold. ThinkMarkets chief market analyst Naeem Aslam recently said that the recent huge spike in price for these two assets is due to a lack of confidence in the stock market along with the ongoing U.S.-China trade war. And Max Keiser recently tweeted “Gold cannot offer individual sovereignty to the extent of #Bitcoin. For this reason, BTC will continue to gain market share until reaching market-parity with Gold.”
Often called “digital gold”, bitcoin has tracked with gold thus far in 2019.
Eternal bitcoin bulls, the Winklevoss Twins talked about bitcoin’s recent resurgence with CNBC’s Seema Mody on July 10, calling bitcoin “Gold 2.0” and believe that it is “a very undervalued asset.”
Not everyone agrees that Bitcoin is the new gold. Deric Scott, Vice President of Metals.com says, “Gold is universally accepted as currency around the world and has been for nearly 6,000 years. Its tangibility and anonymity make it very appealing for people looking to retain what little shred of privacy we as a collective society still have.” Peter Schiff, noted bitcoin skeptic and gold expert, and Anthony Pompliano, co-founder and partner at Morgan Creek Digital and bitcoin enthusiast, have agreed to debate the utility of gold against Bitcoin on CNBC’s Crypto Trader. Date undetermined, but if you’re interested, follow the developments on Twitter. @APompliano @PeterSchiff @cryptomanran