One of Australia’s richest young millionaires predicts that Bitcoin will double within a year – despite a recent price crash.
Finder co-founder Fred Schebesta, who has an estimated net worth of $340 million, predicts Bitcoin’s price will reach around $105,000 by the end of 2022.
But the climb will be volatile, with prices fluctuating up and down along the way.
Schebesta, who ranked 29th on the Australian Financial Review’s Young Rich list last year, told Daily Mail Australia: “Bitcoin is in a correction phase and it could last for the rest of the year. as it settles into more stability”.
“It is very volatile, but over time it will become less volatile and the fluctuations will be fewer and less sharp.”
One of Australia’s richest young millionaires predicts that Bitcoin will double within a year – despite a recent price crash. Finder co-founder Fred Schebesta (pictured with Sunrise co-host Natalie Barr), who has an estimated net worth of $340 million, predicted on November 10 that the world’s most valuable cryptocurrency would reach $100,000 ‘within the next week’ when she was worth $92,424
The financial comparison site entrepreneur has put December 2022 as the date when he expects Bitcoin to hit $105,000.
He is so confident that he invests in a platform that allows investors to earn cryptocurrency by playing video games.
Schebesta has a mixed record when it comes to predicting Bitcoin developments – having predicted that Bitcoin will hit $100,000 “within the next week” on November 10 when it was worth it $92,424.
Since then, Bitcoin has plunged 44% to be worth $51,400. Despite the drop, the cryptocurrency is still above the $42,700 level from a year ago.
Bitcoin’s current slowdown comes despite soaring inflation in the wealthy world, with US consumer prices rising 7% in 2021, marking the fastest rise in four decades.
New Zealand’s consumer price index in the year to December rose 5.9%, the fastest pace since 1990, while headline inflation in the Australia rose 3.5% – above the Reserve Bank’s 2-3% target.
In this climate, digital currencies are expected to do well as consumers lose faith in traditional currency.
Bitcoin plunged 44% to be worth $51,400. Despite the fall, the cryptocurrency is still above the $42,700 level from a year ago
But the prospect of an interest rate hike by the US Federal Reserve also reduced risk appetite, with global stock markets starting January in a weaker position.
Despite high inflation in first-world countries, due to government stimulus measures and Covid supply constraints, Schebesta said price increases needed to be more broad-based to help Bitcoin in the weeks and months ahead. .
“High inflation in a country is not yet enough to move the needle on Bitcoin’s value, as it needs to be adopted much more widely before that happens,” he said.
Mr. Schebesta, through his Hive Empire Capital, is investing cryptocurrency tokens in Balthazar, a new platform that allows investors to earn non-fungible blockchain (NFT) money by playing games. video games.
Schebesta (pictured), who ranked 29th on the Australian Financial Review’s Young Rich list last year with a wealth of $340 million, said the price of Bitcoin is likely to rise and then fall for the rest of 2022
Balthazar CEO John Stefanidis said $2,000 per year of in-game token rewards could potentially be earned, which could be exchanged for Bitcoin, Ethereum, stablecoins or banknotes traditional.
“Millions of people around the world, especially in parts of Southeast Asia and other developing countries, are joining the gambling revolution to win and we are seeing a redistribution of wealth towards people who need it the most,” he said. noted.
“It’s a very exciting space and a great way to play games and earn money at the same time.”
“It is also very volatile and the value of these rewards can fluctuate.”
WHAT IS BITCOIN AND HOW DOES IT WORK?
What are bitcoins?
Bitcoin is a cryptocurrency – a type of online money that is created using computer code.
It was invented in 2009 by someone calling himself Satoshi Nakamoto – a mysterious computer coder who has never been found or identified.
Bitcoins are created without using intermediaries, which means that no bank charges fees when they are exchanged.
They are stored in what are known as virtual wallets called blockchains which keep track of your money.
One of the selling points is that it can be used to buy things anonymously.
However, this has left the currency open to criticism and calls for stricter regulation, as terrorists and criminals have accustomed it to drug and gun trafficking.
How are they created?
Bitcoins are created by a process known as “mining” which involves computers solving difficult mathematical problems with a 64-digit solution.
Each time a new mathematical problem is solved, a new Bitcoin is produced.
Some people create powerful computers for the sole purpose of creating Bitcoins.
But the number that can be produced is limited, which means that the currency must maintain a certain level of value.
Why are they popular?
Some people like Bitcoin because it is a form of currency that eliminates banking intermediaries and the government – a form of peer-to-peer currency exchange.
And all transactions are publicly recorded, so it is very difficult to counterfeit.
Its value surged in 2017 – beating the “tulip mania” of the 17th century and the dot com boom of the early 2000s to become the biggest bubble in history.
But the bubble appeared to have burst, and questions arose as to what market it had left in the long term.
However, it has since exploded again and in March 2021 surpassed the $60,000 mark for the first time.