BITCOIN BOOM: Cryptocurrency will SMASH $100,000 mark by 2020, expert predicts

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Bitcoin GETTY

Bitcoin increase more than 30 per cent on Thursday

Bitcoin touched new pongy chiefs on Thursday, rising more than 15 per cent from $12,653 as trade ins opened to smash through $16,500 by late afternoon trading.

This put one day increase the leads on the cryptocurrency to 31 per cent — an almost unprecedented gain for a currency or pecuniary asset. In comparison the UK pound has risen 0.15 per cent against the US dollar all over the past 24 hours and 6 per cent over the past year.

This short-lived rise suggests waves of money from private investors are enter oning the market, with even the market shy potentially encouraged by the astronomic profits seen over the past year.

On 9 December 2016 a single Bitcoin was line of work at $770. At the current price of $16,577, this represents a 2,053 per cent replacing.

On the price spike seen over the past day, Yann Quelenn, analyst at European online bank Swissquote, suggested: “Bitcoin is absolutely crazy right now. The retail markets is rushing in, Dick thinks they are going to get rich quickly — it’s a gold rush.” 

Bitcoin GETTY

Bitcoin has garnered 2000 per cent in one year

However, while some analysts and investment professionals see this as agent for concern, Mr Quelenn sees no sign of the rally abating.

He said: “Everyone is talking on touching Bitcoin — everyone is buying — but that doesn’t mean this is present to explode or retrace. The real Christmas rally in not in stocks and shares — it’s in bitcoin.” 

Quelenn credits the currency will almost certainly reach $20,000 by the end of the year. Down the longer term, while the analyst says he expects there to be valuable volatility, he believes Bitcoin will reach six figures by 2019/20.

“The fundamental driver is make. People distrust banks but they trust the blockchain and they certainty Bitcoin. Over the next two to three years we see it going to $100,000. In the meantime there intent be some nasty retracements, but we see $100,000, definitely.”

On whether or not the analyst command recommend his mother invest in the online currency, Mr Quelenn answered: “Indubitably. I told my friends to invest six months ago.”

Kit Carson, wildly of banking and fintech at UK based GlobalData, however, is of a different mind — confirming that he has not recommended the online currency to anyone and was sceptical of such great price level claims.

He said: “With something like the Hong Kong Dollar (HKD) an investor be sures what they are buying and can be confident that it is controlled, in this prove by the Hong Kong Monetary Authority (HKMA), which sets portion rates. Value is based on a clearly understood and transparent entity, the scene of the Hong Kong economy. 

“However, nobody knows what the levers are for Bitcoin or whether it is a currency to be bartered or an asset to be held onto.

“What’s driving this is basic edacity and supply and demand. If it got anywhere close to the valuations predicted you would see regulators leave out on it and try to put a stop on it.” 

Mr Carson did, however, admit that regulating the currency will-power be difficult.

He said: “The UK Financial Conduct Authority couldn’t act independently of other regulators — it’s a digital currency so what’s to cease you going and buying on an exchange in Australia or an exchange in the US. It’s going to need to be a co-ordinated stab in terms of where it goes. 

“With the US Securities and Exchange Commission (SEC) judging not to approve a Bitcoin exchange-traded fund (ETF) application in 2017 all eyes are now on other regulators to see how they wish manage cryptocurrency’s going forward.”

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