- Bitcoin is rapidly gaining popularity, but many observers are concerned about its volatility.
- Insider spoke to four crypto experts to understand what the future holds.
- The experts also shared the most crucial information that newbies should know before investing.
- See more stories on the Insider business page.
Bitcoin is rapidly gaining popularity, as many view cryptocurrency as a valid medium of exchange or storage.
But the digital currency unit has its drawbacks. Its volatility is widely recognized among many others, which has led investors, including Warren Buffet, to criticize it and other cryptocurrencies as “risky” and “worthless.” And now, with the recent rollout of China’s digital currency, discussions about bitcoin’s vulnerability are gathering momentum.
Insider spoke to four crypto industry experts about their future predictions.
Former ‘Mighty Ducks’ star Brock Pierce has become a crypto titan
When asked where he would see bitcoin in 10 years, Pierce seemed optimistic while also taking a look at the US government’s budget decisions.
He said: “Having seen the growth of btc over the last 6 months (Mkt cap exceeding $ 1T), I am very optimistic about the future growth of this technology. Our government’s bad monetary choices (over-pushing, overspending, etc.) are only working in favor of Bitcoin – and from what we’ve seen over the past year, there’s no sign of slowing down. “
For Pierce, the crypto landscape has changed dramatically since its inception. But according to him, one of the main attractions of cryptocurrency is the fact that “every transaction that has taken place is put on an open public ledger, making fraudulent requests almost impossible”. That’s why he added, “If you haven’t researched Bitcoin or Blockchain technology, I urge you to do so!”
James Ledbetter, editor and editor of the fintech newsletter, FIN
As concerns hover over the effect of China’s recently launched digital yuan on bitcoin, Ledbetter said, “In general, the development of central bank digital currencies (CBDCs) can be seen as encroachment on territory. bitcoin. If the digital yuan is widely accepted, this may discourage some people in China and elsewhere from investing in bitcoin. ”
With a new wave of young people investing in cryptocurrency, he added, “It scares me if people enter the bitcoin market because consciously or unconsciously they think it will never go down.”
This is one of the reasons why people “should never invest more in any given asset than you can afford to lose,” Ledbetter added.
Joey Krug, Co-Director of Investments at Pantera Capital
The reason young people invest in bitcoin is because, in general, young people tend to hold assets further on the risk curve than other groups, says Krug.
Young people see the government printing billions of dollars in fiscal stimulus, threatening to quickly devalue the US dollar, Krug said. Meanwhile, there is a growing sense that the opportunities for socio-economic progress are fewer and more difficult to find. “The result is that today many more young people own bitcoin than gold. This trend is not going to be reversed,” he added.
Krug outlined three key areas that newbies should pay attention to: He said, “First, remember bitcoin could go down 70% or more. Second, be aware that it could increase many multiples. Third – and in light of # 1 and # 2 – figure out an investment size that will allow you to hold bitcoin without driving yourself crazy or losing sleep with every short-term price change.
He added that “if you buy too much compared to your other assets, you will inevitably panic and sell when it goes down. Investing in Bitcoin is a long game, and it is not for the faint of heart.”
Lucy Gazmararian, Founder and Managing Partner of Token Bay Capital
“Today, bitcoin is increasingly seen as ‘digital gold’ due to its scarcity value, as there will only ever be 21 million bitcoins in existence,” according to Gazmararian.
As for how she thinks bitcoin will fare in five to ten years, it’s conceivable that it will become the world’s reserve asset, she said. “There are early signs that this is happening today with companies around the world starting to add bitcoin to their balance sheets.
She added that money is on the verge of becoming “a much more complex payment instrument than ever before” with the advent of digital currencies. Indeed, in his view, the future looks as if central bank digital currencies, cryptocurrencies and other digital representations of value will seamlessly interact within our digital economy.
Asked what key information potential investors should know, Gazmararian highlighted two key points. “Develop your own take on this new technology and understand why you have it,” she explained.
She also believes that “there are distinct operational risks associated with holding bitcoin” because it is purely virtual currency and can be stolen from your digital wallet if your private key is in the hands of an actor. harmful “.