Bitcoin has a had an exciting year in 2018.
Bitcoin prices began the year on a high and nearly reaching $20,000 in December last year. At the time of writing Bitcoin is currently trading at just over $7,400.
Some experts believe that Bitcoin won’t skyrocket once again, speaking to CNBC, five experts give their opinion on the cryptocurrency.
Jamie Dimon explains why he doesn’t trust Bitcoin.
Speaking in September last year, Dimon says that Bitcoin could $100,000 worth before it goes down and the first thing Governments will do form a currency which they like to know where the currency is going and who has it.
He continues to say that right now, Governments see Bitcoin and other cryptocurrencies as a kind of novelty but until it is used for fraudulent purposes or someone gets hurt they will close it down.
He finishes by saying that Bitcoin (and cryptocurrency in general) isn’t a real thing so eventually it will be “an emperor without clothes.”
The co-founder of Datatrek Research, Nicholas Colas believes that there are two fundamental reasons for now not being the right time to invest in Bitcoin.
His initial reason was that there isn’t enough incremental engagement with individuals who are interested in buying Bitcoin for the first time.
“Like any new technology, you need to new adopters to come in to make it more valuable.”
Colas goes onto explain that if you look at the Google searches they are down from the peaks they had in December and January by 85% to 95%
The second reason now isn’t the right time to buy is due to a lack of wallet growth.
Many people aren’t opening up new Bitcoin wallets, which would make it foolish to invest at this point in time.
Charlie Munger, the vice chairman at Berkshire Hathaway believes that Bitcoin is pointless and that it is essentially “worthless artificial gold”
He continues by saying that world doesn’t need something like Bitcoin right now (if ever) as if it were to succeed it would most likely “facilitate a lot of illicit activity.”
“The fact that its clever computer science doesn’t mean that it should be widely used and that respectable people should encourage other people to speculate on it.”
Munger, says that Bitcoin reminds him of the way Oscar Wilde’s defined fox hunting:
“The pursuit of the uneatable by the unspeakable.”
He finishes off his interview by saying that Bitcoin and other cryptocurrencies are a “scum ball activity”
The once economic adviser to the White House has said that he is also not a big believer in Bitcoin, but he does believe in blockchain technology.
Cohn goes on to say that he thinks there will be a worldwide digital currency when the globe understands it and when it doesn’t rely on mining costs.
What Cohn is saying is that when the world understands everything about it, how it moves, how it works and all the ins and outs then it will become more mainstream to the rest of the world aside from Bitcoin fanatics.
The Chief Economic Advisor to Allianz has had his say on whether Bitcoin will bounce back.
El-Erian believes that Bitcoin got to $20,000 in the past due to the people who truly believed in Bitcoin and others who followed them to just jump on the bandwagon which was just speculation.
He continues by saying:
“I suspect that if you look 10 to 15 years down the road, we will have digital currencies, but the public sector will have involvement in them. It won’t be pure Bitcoin… but the Blockchain technology, take that seriously.”
El-Erian finishes by saying that the price he would buy would be around $5,000.