Bitcoin is currently breaking all records. For months now, the price of bitcoin has been rising at an ever-increasing rate. Due to its rapid growth and increasing popularity, many jump on the hype train, perhaps due to fear of missing out. Should you jump too?
In this 2-part series 24 experts give their blunt opinion about Bitcoin and its future. They talk the pros and cons of buying bitcoin, each from their own perspective. Read part 2 here.
1“Bitcoin is not PayPal, it is digital gold”
By Toni Lane – Toni is an artrepreneur in the Digital Currency and Blockchain Industry who co-founded CoinTelegraph and CULTU.RE, the virtual blockchain nation movement.
Buying Bitcoin is a simple question of understanding unit economics of supply and demand. There are only 21 million bitcoin in existence. Finite supply. Should more people demand bitcoin, the number of bitcoins in existence will stay at 21 million.
If demand for bitcoin grows, the network effect will cause the price to increase while the supply stays the same. Very elegant! Very beautiful! Very simple! Bitcoin is not PayPal, it is digital gold. A store of value for you to hold, with the added bonus of ease of use if you decide to universalize your use of currency.
Bitcoin was created in 2009. In less than 10 years, the digital currency has become a top 30 world currency, outpacing the monetary supply of most nations into the top 30… and we are still in early adopter phase! It is not too late to get in. The world is changing. Join the revolution.
2“Everyone should be participating in buying crypto currency”
By iboughtabitcoin.com – A civilian’s advice on owning cryptocurrency. A blog that aims to bring Bitcoin and altcoins to the “regular folks” in the street (with a twist of anarchy).
I think EVERYONE should own some cryptocurrency. If a person can afford to invest $17,000 they should buy at least 1 bitcoin. It will be the wealth vehicle of the future. If people are priced out of bitcoin, they should buy some alt coins that are still less than $1000.
Ethereum is a solid protocol to buy and it’s currently about $700. But one or two. There are others in the $300 range that may be more affordable – Litecoin looks like it has great application as an everyday currency because transactions clear very quickly. Monero is also about $300 and it will be valuable because it is the truly anonymous crypto currency (bitcoin can be traced back with some effort). ZCash is also around $300 and has great potential for mass adoption because it offers privacy and selective transparency with decent transaction speeds.
If people can, they should diversify with as many different currencies as possible. An even more affordable option is Ripple which is the digital currency developed by Google. It’s trading at about $0.30 each and is prime for mass adoption. I do warn that there are thousands of baby coins trading at a few dollars or less than a dollar. Before buying a bunch of these affordable-looking items, make sure you understand who is developing them and how they will fill a need in the marketplace. Not all of them will grow out of the baby coin phase.
Before someone can buy bitcoin or any cryptocurrency, they need to open an account on an exchange. That is a frustrating and time consuming process (I wrote a blog post how to do this).
After someone buys some cryptocurrency, they will likely see its value increase – sometimes dramatically. As the value grows, they will want to move off of an online exchange (which can be hacked) into an offline hardware wallet (where it can’t be hacked). This is a frustrating ordeal too! I’m currently blogging about choosing, buying, setting up, and transferring my cryptocurrency to the hardware wallet.
So the bottom line is, yes, everyone should be participating in buying crypto currency. But be patient and be cautious. Do skip a vacation and use that money to invest in some cryptocurrencies but DON’T put in more than you can afford to lose.
3“Bitcoin is not for everone…”
By Jaime Sanchez – Jaime Sanchez, the CEO of Blockbliss and Chief Evangelist at Fundary® which offers peer to peer loans, backed by the blockchain.
Bitcoin is only for those that have already established a 3-6 month emergency fund, because there is so much short term volatility. We have seen 20% swings in one day and up to 50% over the last month.
4“Bitcoin will have one of the highest returns next year!”
By Philip Dimitrov – Philip Dimitrov is founder of CoinStaker.com. CoinStaker offers all the latest breaking news on Bitcoin and cryptocurrencies. Reports on Bitcoin exchanges, trading fees, ICO’s and even gambling.
Bitcoin does not have the most advanced technology in comparison to many other cryptocurrencies, but being the most famous one, I predict that it will have one of the highest returns in the next year!
5“Bitcoin continues to show a consistent increase in user base”
By Jonathan Millet – Jonathan Millet is CEO of newsbtc and Bitcoin Investor. Jonathan is a hardcore crypto believer, investor in altcoin, known for strong salesmanship and believes in the right execution.
As of writing, the global Bitcoin market is worth approximately $100 billion and growing (according to www.coinmarketcap.com). It crossed the overall market cap of Goldman Sachs which is ~ $95 billion just recently, and we assume that you know where this is headed. Yeah, that’s right! All those handsome numbers making you fuzzy in your head. That’s how bright, the future of Bitcoin is supposed to be.
Willy Woo, an influential Bitcoin and cryptocurrency researcher, recently said that the number of Bitcoin users doubles every 12 months. Although this is a near about approximation, but what this means is through a steady growth rate and periodic ups and downs (depending on the current price trend), the Bitcoin network will continue to demonstrate a consistent increase in user base in the long run.
In his recent statement, he said, “If I was to assume Bitcoin’s adoption curve will be a symmetric S-curve, we’ll reach 50% adoption in 9 more years, however to complete the last half of the S will take 17 more years – 26 years from today. This is roughly one human generation from today. Children today by the time they reach adulthood, will transact in a world where everyone uses Bitcoin.”
According to Trace Mayer, a long-time Bitcoin investor and analyst, international Bitcoin transactions, price, hashrates, wallets, trading volumes, and the ongoing volatility are the six main factors that can be attributed to Bitcoin’s super charged bull run in the near future. Also considering the accelerated rate of Bitcoin’s adoption as the primary monetary transaction tool in major regions such as the US, Japan and South Korea, the market cap of Bitcoin would likely surpass that of JPMorgan, the largest retail bank in the world which is currently valued at $350 billion.
This would leave the trillion-dollar mark very much open to a smooth conquer. If you need any more convincing to get yourself at least a single Bitcoin, then you should know that experts in the sector including billionaire investors Tim Draper and John McAfee have reaffirmed their long-term price targets of Bitcoin at above $200,000.
6“Bitcoin is technically flawed and will eventually fail”
By Mark van Rijmenam – Mark van Rijmenam is founder of Datafloq.com. Datafloq drives innovation with big data, blockchain, artificial intelligence and other emerging technologies.
Yes, you should buy bitcoin if you want to benefit from an upcoming price increase and want to get out quickly. No, you should not buy bitcoin if you want to keep it for the long run. Bitcoin is technically fundamentally flawed and will eventually fail. For more information see: Why Bitcoin will fail and what will come next.
7“Bitcoin Cash will become the most widely used cryptocurrency in the world”
By Roger Ver – Roger is Bitcoin Angle Investor. He has served as the full time CEO of MemoryDealers.com. Roger is currently involved in numerous Bitcoin related projects.
Although the price of the Legacy Bitcoin chain (BTC) has seen a dramatic rise this year, the system has become degraded by extremely high fees and slow transaction times. It has become an attractive vehicle for speculation, but one that lacks a solid foundation of commerce and utility to drive demand. While the cryptocurrency market grows exponentially, the developers of Legacy Bitcoin have decided to restrict network capacity, meaning that Legacy Bitcoin cannot benefit from the same growing adoption rates that all other cryptocurrencies currently enjoy.
Bitcoin Cash is the same version of Bitcoin that I first began investing in back in 2011. At the time, I understood the massive potential for a peer-to-peer electronic currency. Bitcoin first gained so much traction because people found it to be a useful tool for commerce and for achieving financial freedom. While Legacy Bitcoin currently enjoys the media spotlight, the fundamentals of Bitcoin Cash are sound and it will continue to see increased adoption from people all over the world who value the ability to send any amount of money to anywhere in the world, virtually for free.
Right now, the price of one Bitcoin Cash is much lower than the price of one Legacy Bitcoin, but I expect to see it continue to gain ground and eventually overtake Legacy Bitcoin to become the most recognized and most widely used cryptocurrency in the world.
8“Buy a fraction of Bitcoin as a “souvenir” of your contribution to the digital revolution”
By Dr. Paolo Tasca – Dr. Paolo Tasca is founder and Executive Director of the Centre for Blockchain Technologies (UCL CBT) at University College London.
Yes, you should buy Bitcoin. But when you decide to buy Bitcoin you should also consider the other more than thousand cryptocurrencies and tokens that are currently circulating and that can enter your investment portfolio of “alternative” assets classes. Moreover, when you create your portfolio composed of these new asset classes you should also bear in mind some possible risks.
Bitcoin and altcoins beat any other traditional investment in return. Bitcoin annual compound growth rate has been about 600% during the last 6 months. This means that you could have at least tripled your investment from July to November. But these cryptocurrencies and tokens bear also higher annualized daily volatility, which can be 50 to 100 times larger than traditional asset classes.
Moreover, if you are tempt to buy tokens issued by startups during their Initial Coin Offerings, you should bear in mind that in the 25% of cases, their tokens lose the 95% of their value within about 70 days from their listing on the exchanges.
So, yes you should buy Bitcoin and other cryptocurrencies and tokens but you should select well your portfolio and have a strong stomach that is able to handle high market swings and fluctuations. If you are risk averse, you tend to easily panic and don’t have enough knowledge about cryptocurrencies, I would suggest buying a fraction of Bitcoin just as a “souvenir” and keep it for some years as a flag witnessing your contribution to the digital revolution of our society.
9“Bitcoin still has substantial upside price potential”
By Alex Lielacher – Alex Lielacher is founder of Bitcoin Africa Ltd. Alex has been following bitcoin since 2011 and regularly writes about personal finance, fintech and digital currencies.
Despite its recent rally, bitcoin still has substantial upside price potential as institutional investors have only recently warmed up to the idea of investing in bitcoin and there is wave of institutional money that is yet to enter this new digital asset class. Bitcoin is well on its way to becoming an internationally accepted alternative asset class for both high net worth individuals as well as institutional investors and that will be positively reflected in its price in the coming 12 to 24 months
10“Bitcoin still has substantial upside price potential”
By Brian Schuster – Brian is an industry researcher for Hivergent Media. He first got involved in cryptocurrency investing in January of 2016, where he was able to make an over 10,000% ROI.
If you should buy Bitcoin entirely depends on your tolerance for risk and volatility. Despite being heavily bought into the ecosystem, both in my work and investments, this isn’t for everyone. Some people’s funds are better left in low yield bonds or some other vehicle, rather than being invested in some digital currency. If you’re somebody who already picks stocks to get major returns, or does angel investing with a 90% failure rate, then cryptocurrency might be a good place to invest.
However, don’t feel pressured to purchase cryptocurrency today. We’re in the middle of a bull market, one that has seen the cryptocurrency market grow from $20 Billion to $500 Billion in 12 months. If you get in now, you still might see outsized returns… or this could be exactly the moment when the market takes a downturn. We don’t know when this will happen, just that at some point it will.
If you feel the need to invest, I recommend dollar-cost-averaging by investing a consistent amount of USD every day/week. If the market takes a downturn (as often happens), you reap the benefits of getting more cryptocurrency for the same USD value.
11“Even at USD $17,000, Bitcoin is undervalued”
Even at USD $17,000, Bitcoin is undervalued for long term investors. But, there is a risk of that Bitcoin will fail. This risk has nothing to do with regulations, alt-coins or the dramatic rise in value this past month. The problem is that investors like you and me retard market traction, and this threatens long-term viability.
Let me explain…
The question assumes that Bitcoin is an investment or collectable. Currently, its value and volatility are driven by the fact that most people holding Bitcoin are hoping that it rises in value, rather than spending it for goods, services and to pay bills.
Individuals who hold or hoard Bitcoin will see a paper gain or loss, of course. But, the real value comes when used in commerce to pay staff and settle debts That is, when it is widely accepted in payment for goods and then spent on things (either at your business or as a consumer). Such grassroots circulation is needed to sustain the value that speculators bet on. Without adoption as a functional payment instrument, Bitcoin will die, and along with it, the hopes of investors.
The tipping point will arrive when some vendors begin quoting the cost of goods and services in Bitcoin. When this happens, a series of events will unfold that reduces volatility and locks in the profit of early investors. But, this will happen only with broad consumer and business adoption.
12“You will regret not investing sooner…”
By Devin Milsom – Devin Milsom is the founder of CryptoInvestorsBlog.co.uk, which educates investors on how to safely and profitably invest in bitcoin and cryptocurrencies.
Bitcoin, alongside many other cryptocurrencies are revolutionizing money as we know it today, this is the blockchain revolution and it is in its infancy.
Bitcoin is a decentralised virtual currency that provides secure global transactions quickly and does not have any manipulation. As all transactions are publicly available on a distributed ledger, you can see where your money is going and the status of the transaction. You can also verify the existence of your currency from its creation – this is done through the blockchain.
Bitcoin is one of many cryptocurrencies built on a Blockchain which is a technology that puts the trust from third parties into our own hands, allowing us to validate our own transactions and verify our own data. The technology allows for much faster and more secure global transactions, drastically expediting globalisation.
This is just the start of the blockchain revolution, the market cap for cryptocurrencies is still relatively small compared to other asset classes. Without a doubt you will hear more and more about blockchain in the near future, and you will regret not investing sooner.’
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of InvestaWeb.