Stephen Gandel of Bloomberg Gadfly notes that, when measured by valuation, Bitcoin is four times more expensive than dot-com stocks were at the height of internet bubble in the 1990s.
Pricing desireĭespite Bitcoin's meteoric rise, it almost goes without saying that any investor thinking of jumping into the market need to be cautious.
"When that mining stops or when it slows down dramatically, that's when the value really increases because there is no more supply to be created," he said in an interview.
Mondrus sees even better times ahead for Bitcoin - he expects its value to hit $1 million in about a decade as fewer coins are electronically created, or "mined." Arthur Hayes, CEO of the BitMex cryptocurrency exchanges, sees Bitcoin prices at $50,000 during that same time period, telling Bloomberg News that the cryptocurrency's meteoric rise is a "transformational" experience that happens once every hundred years. Speaking on CNBC earlier this week, noted hedge fund manager Michael Novogratz predicted that Bitcoin could "easily" hit $40,000 by the end of 2018. According to Axios, more than 100 hedge funds specializing in cryptocurrencies have launched this year. These characteristics are spurring enormous investor interest, if only to cash in on the short-term trading opportunities. And Bitcoin, unlike regular currencies, isn't subject to the control of central banks, another plus in the eyes of its fans. For instance, Bitcoin is divisible up to 8 decimal points, making it easier for users to transact using fractions of cryptocurrency. "There are only 21 million Bitcoins that can possibly be in existence - 16 million of them already exist."īitcoin also has many attributes that ordinary money lacks, Mondrus said. "Do you think that the US government will ever stop printing money?" he said. And while the former is strictly controlled, the latter is growing by leaps and bounds, driving up the currency's value. Bitcoin $1 million?įor fans of Bitcoin, such as David Mondrus, the CEO of Trive, which rewards users who find fake news on the Internet, the case for the cryptocurrency is a largely matter of supply and demand. By comparison, New Zealand's gross domestic product is $176 billion, while in mid-2010, or roughly two years Bitcoin was created, it was valued at 8 cents.
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