Bitcoin Erratic Price Cause Panic As Research Reveal The Real Value Of The Cryptocurrency To Be Zero
Bitcoin’s erratic price has become subject of headlines since during the holiday season as experts reveal their take on the real value of the cryptocurrency amid predictions that it might rise to as high as $60,000 in 2018.
Speaking to CNBC, TenX co-founder and president Julian Hosp revealed that his prediction on the price of Bitcoin in the coming new year includes a rise in its price to as high as $60,000 or a drop to as low as $5,000.
“I think we’re going to see Bitcoin hitting the $60,000 mark, but I also think we’re going to see Bitcoin hitting the $5,000 mark.”
According to the cryptocurrency entrepreneur whose company handles e-commerce through cryptocurrencies, it still remains uncertain which mark it would hit first in 2018.
Based on a report from the Tech Times on December 25, Bitcoin’s price drop caused a surge of panic among investors and cryptocurrency traders as it landed below $12,000 after reaching a staggering price of almost $20,000.
The report said the cryptocurrency frenzy went on a bull run since the beginning of 2017 as it started to a seemingly unending rise that started at $997, reaching new heights in December. However, its value started to drop after Bitcoin.com co-founder Emil Oldenburg announced that he will be selling his stake in Bitcoin while slamming its high transaction fees only to support another cryptocurrency called “Bitcoin Cash.”
But is the promise of instant wealth attached to Bitcoin really worth it?
According to Fortune, Morgan Stanley analyst James Faucette gave his take on the popular cryptocurrency in a research note and revealed that the value of Bitcoin might actually be much lower than people think. In fact, he says it could actually be zero.
Bitcoin following classic bubble pattern. pic.twitter.com/fhEedS4bjq
— Patrick W. Watson (@PatrickW) December 20, 2017
Explaining his position in a research note dubbed as “Bitcoin Decrypted,” Faucette said Bitcoin isn’t considered a real currency since there is no interest rate attached to it and because it lacks intrinsic value for not being a physical object.
On the other hand, the Morgan Stanley analyst conceded that Bitcoin does have value in terms of being a payment network but if enough people refuse to accept the technology, it will be pegged at zero.
Either way, the future remains uncertain as to what direction the cryptocurrency’s value will head although it still has significantly affected the trading industry, particularly the employment rate. Based on a separate report from Fortune, postings of cryptocurrency-related job on LinkedIn rose by as much as 5,753 percent in the first 11 months of 2017.
Coinbase, a U.S.-based cryptocurrency exchange company, explained why this is the case.
“The rise in the value of Bitcoin and other digital currencies over the past 12 months has opened the market up to many retail and institutional investors who were previously sitting on the sidelines,” said a rep for Coinbase, which has approximately 200 employees.
“As the size of the market has grown, Coinbase has added the right people to ensure our platform and customers are properly supported, and we have approximately doubled our headcount in the last year.”
However, it is best to keep in mind that not all cryptocurrency jobs are directly linked to Bitcoin as LinkedIn postings specifically want applicants who have experience in blockchain, the underlying technology in Bitcoin.
