With Bitcoin falling from $19,000 to $13,000 in just three days and then rising to $15,000 and now sitting just under $16,000, many have asked the question: is a market crash imminent? Is Bitcoin’s time over? Many experts feared that this would happen however, Cryptocurrency entrepreneur Julian Hosp thinks otherwise.
Hosp says that Bitcoin’s time isn’t up yet, it will reach new heights however it will reach some lows as well. “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” said Hosp. Bitcoin, and cryptocurrency in general is very volatile currently.
Bitcoin and the rest of the top 10 cryptocurrencies falling by a large amount (percentage wise) in just a matter of days is proof of that (with BTC falling the largest $6000 in 3 days). Then a day later or so they were climbing back up. So, there’s every chance that Hosp is right.
Hosp posed an interesting question that should be asked instead of the when Bitcoin will crash; Will it crash first before reaching new heights or will it crash after reaching said new heights? The order of these events matters a lot as many people could benefit from the former and a lot of people will suffer with the latter.
Many experts have voiced their disapproval of investing in cryptocurrencies claiming that it’s a waste of money as they’re bound to crash because there’s no real mechanism in place to determine their value. Hosp predicts either a $45,000 increase in the value of Bitcoin or a massive $10,000 drop which takes volatile to a whole new level.
As mentioned earlier, experts had already predicted that Bitcoin would fall sooner or later, and when Bitcoin saw a massive drop in a span of just a few days this dip in price was welcomed by said experts. The drop proved them right in a way however Hosp believes that the drop was just beneficial as it provided investors with cheaper Bitcoin which would eventually rise again.
Hosp believes that there won’t be an upward trend to Bitcoin as we have seen throughout in 2017 however instead there will be highs and lows just like any other currency. Hosp is certain that Bitcoin will fall again at least once.
However, Hosp also warns that a consolidation of digital coins might also take place in the future. He claims that “winter is coming”- a crypto winter that is. It won’t be coming anytime soon according to Hosp but it’s a possibility in two or three years with a “big compression in the market”.
What does the future hold?
Hosp believes that this is not really a crypto bubble. A bubble continues for some time and then when it bursts, everyone loses their money due to the value of whatever was being invested in takes a massive hit. Hosp thinks that eventually the market will undergo a sorting phase where all the irrelevant and useless cryptocurrencies will be driven out of the market.
So, instead of a bubble ‘bursting’, the market could see prices of different cryptocurrencies shift according to how useful and valuable their technology is, so a shift in power basically.
“The money is going to flow into those assets in this cryptocurrency space that really deliver value, have new technology, and are being used by people,” he said. Hosp says that the eventual compression in the market will reduce the number of cryptocurrencies out there, however, he did not comment on which cryptocurrency will likely be driven out of the market.
Hosp has given us a new way to look at the current crypto situation. If what Hosp says does indeed come out to be true, then it’s less of a loss given the bigger picture as compared to a market crash. However, nothing is certain with these cryptocurrencies, we can only speculate on their future. Only time will tell what will happen.