Bitcoin is about to blow up, according to a leading expert. As Bitcoinist reports, Phillip Nunn, the CEO of The Blackmore Group and Wealth Chain Group, predicted in January that Bitcoin will drop to a low of $6,000 and hit a high of $60,000. The first part of his prediction was realized when Bitcoin slid below $6,000 for a short time. But some people in the know are doubtful that the cryptocurrency will reach $60,000. Some are skeptical that Bitcoin will even ascend to $20,000, the highest value it has reached so far this year.
But Nunn is sticking by his prediction. His reason? He has a strong belief in the blockchain technology that’s at the foundation of cryptocurrency.
“The reality is we’re moving from an internet of information to an internet of value. It’s going to disrupt everything; money, record-keeping, legal,” Nunn said in an interview with Business Cloud.
Nunn admitted that the market is volatile and it’s actually a factor in the reasoning behind his prediction.
“The prediction was based on, first of all, market volatility which we’re experiencing at the moment; I think that’s really apparent,” I absolutely stand by my prediction,” he added.
Nunn blamed a lot of the unpredictability on market sentiment, i.e. the opinions of the people.
“A flood of bad news can wobble the market, stuff like regulation,” he said. “The industry is so small that there’s market manipulation.”
Cryptocurrency is still relatively new. In comparison to traditional money markets, it’s also pretty small. This “small market” cap also makes it easier to manipulate, Bitcoinist adds. It has been subject to changes in “regulation, technology, and security.”
While Nunn’s predictions about Bitcoin seem largely positive, The Bank Of International Settlements (The BIS) has come out with a different view.
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A report from the 88-year-old institution based in Switzerland has said they believe that Bitcoin and other cryptocurrencies have too many “shortcomings” to ever achieve the ambitions of those who have invested in it, Bloomberg reports.
The BIS, a central bank for central banks added that it thinks that these Internet-based currencies are too volatile, need too much electricity to maintain, and are too vulnerable to manipulation.
While many who support cryptocurrencies’ inherent decentralization as a strength, the BIS reports that it’s a debilitating weakness.
Their report essentially said that cryptocurrency will break the Internet. They claim that if it’s widely adopted for retail, for example, its ledgers will swell to unmanageable levels that would overpower servers and smartphones.
Their assessment of Bitcoin wasn’t all bad. As Bloomberg notes, the central bank admitted that blockchain technology could help the global financial system by making international money transfers more “efficient.” Furthermore, trade finance still relies on faxes and letters of credit, things that seem Jurassic in 2018. So the intervention of cryptocurrency’s ledger system could be helpful there. But they insisted that the system needs a center so that it could perform reliably.