Streets of New York from Harry Garcia on Vimeo. Despite the recent downturn, some of the experts believe that bitcoin has not exhausted its growth potential. Notably, Mike Novogratz, known for his extremely successful hedge fund management strategies, stated the following in an interview with CNBC:
Bitcoin could be at $40,000 at the end of 2018.This does not mean that you should dump everything you have into bitcoin. In fact, for smaller investors, this is more likely to cause problems than anything else. Ideally, one should invest no more the 3% into the cryptocurrency. Uncertainty and volatility seem to be inseparable from the crypto-market at this point, but it is hard to deny that the recent growth has been staggering. Just to remind you, at the start of this year, the bitcoin went for no more than $1,000. And the most recent peak has seen the coin rise to the $20k mark. As Novogratz’s statement implies: not everyone believes the recent downward trend is going to last. Bitcoin needs to stabilize and correct the price after the hike as the current model does not seem to be particularly sustainable. This should not necessarily mark the end of the value rise, however. How realistic is this prediction? It is difficult to tell given that this optimism is hardly unanimous in the investment community, but one thing is certain – cryptocurrency in general, and Bitcoin in particular, should not be underestimated.