Bitcoin is down 80 per cent from its all-time high in December 2017, and many altcoins are down even more. However, according to Spencer Bogart, an executive at Blockchain Capital, this is a great buying opportunity. He made the statement during an interview on CNBC on December 17th.
Where could bitcoin go?
According to Coinmarketcap.com, bitcoin is trading around $3,921. The currency is up over ten pro cent during the past 24 hours. However, it is down over 80% during this past year. Spencer Bogart said a year ago that we could see prices go to over $50,000 during 2018. It has not happened yet, and we are running out of time this year. Bogart emphasises that Blockchain Capital is a “long-term” venture investor. He still argues that the price of bitcoin can go to $50,000 but did not want to say anything when it came to timing.
“Could Bitcoin go to $50,000? Absolutely. It doesn’t have the same kind of price-to-earnings, enterprise value to revenue that normally puts an upper bound or a ceiling on a typical early-stage technology company […] How long will it take? I’m not sure.”
The host, Melissa Lee, criticised the belief many bitcoin enthusiasts had during the end of 2017, that bitcoin “could only go up.” Bogart argued that there is nothing wrong with the thesis itself. The crypto market is an unusual case where retail investors drove the market higher. The market tends to go a bit too high, and the opposite is also true, that the market tends to go too low.
What would drive the bitcoin price higher?
Bogart said that the current state is short-term weakness and that one year is not a lot of time when it comes to any asset class. The fundamentals look just as good as they did 2017 if not even better now. There are so much happening in the market currently. The lightning network will become a part of bitcoin. It is also important that the asset class gets regulated and stabilised with institutions. That is happening right now.
Institutions such as Fidelity, Nasdaq, Intercontinental Exchange through Bakkt, Boerse Stuttgart and more custodians for the asset class are arriving at the cryptocurrency space. Some of the most prominent universities in the world are diving into cryptocurrencies, universities such as Harvard and Yale.
Bogart’s last bullish remarks highlighted the outstanding “quality of the talent that we’re seeing entering the space. He is adding that “a lot of the best and brightest are saying ‘I want to go work on Bitcoin.”
With one last consideration on price volatility, Bogart said that Bitcoin today could also absolutely go lower and that we could see prices anywhere between here and $2,000 or even $1,000. However, he says that all of these price points represent “a great buying opportunity.”
“When we look back 24 or even 12 months from now, we’re going to say, ‘why didn’t I buy then?”
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Dennis Sahlström has been trading and investing since 2012 and has for the last two years been consistently profitable. He has been in the crypto- and blockchain space since the middle of 2017 and realized its potential for our world, not least how it is transforming the society we live in. He has now created an education platform, together with the wealth coach Marcus the Maria. They teach regular people how to invest and trade in the cryptocurrency market with proven strategies. If you want to learn more and feel like its time to get into this new asset class, download our free book and register to the next live training to get your future in cryptocurrencies started.