Bitcoin managed to go up in value from less than $1000 in 2017 to almost $20,000 in a matter of 12 months. However, these days, after regulatory changes, it has dropped to somewhere around half of its former value. But considering how it jumped in April 2018 from struggling around $6,000 to almost $10,000 now, does it mean that it is already making a comeback? If you will be asking Bill Gates, he mentioned recently that he would bet against Bitcoin if possible.
He said that “as an asset class, you’re not producing anything and so you shouldn’t expect it to go up. It’s kind of a pure ‘greater fool theory’ type of investment”. He added that “I agree I would short it if there was an easy way to do it”.
He also called ICOs to be speculative. He even said that someone gave him a Bitcoin during his birthday and he decided to sell it a few years later. According to Gates, “Bitcoin and ICOs, I believe completely they’re some of the speculative things”.
Blockchain Tech Potential
However, Bill Gates believes that the underlying technology behind cryptocurrencies does have potential. In fact, it is true that blockchain technology has been able to eliminate third parties when it comes to recording transactions and creating a secure environment for parties to transact.
However, despite the fact that Bitcoin is the very first technologic application that came out of blockchain technology, he is actually on board with Warren Buffet’s opinion on cryptocurrencies.
Building Momentum
Bitcoin has been building momentum lately. In fact, there was a point that it was able to go as high as $9,954 on Saturday. However, it dropped back the following day. Could this mean that Bitcoin is already going back to its old bullish ways?
If you will ask Mati Greenspan, the senior market analyst for social trading platform eToro, “The consolidation we’re seeing now is actually quite healthy”. In addition to this, he added that “In the meantime, we’re holding well above support at $9,000.
For David Johnson, he considers $10,000 as a level of psychological importance. This could mark the start of a bullish run that could land Bitcoin around $12,500.
If you will look at Bitcoin’s technical analysis, it is showing a bullish momentum. Now that there are institutional investors interested in Bitcoin and other altcoins, it is possible that the price is going to go higher. According to Oliver Isaacs, who is a blockchain investor, advisor, and influencer, “The price of bitcoin will continue to rise in the short-term as more institutional investors like Goldman Sachs start to trade cryptoassets and futures on behalf of their clients”.
Is Bill Gates wrong about his opinion on cryptocurrencies and Bitcoin? Remember that this isn’t the first time he spoke against cryptocurrencies.
Though it is true that there is a growing number of institutional investors that could push the price of cryptos up, the entire market is still quite volatile. It means that you still can’t remove the fact that you will be dealing with price swings. In fact, Bitcoin’s price may have dropped recently could mean different things. It could mean investors cashing out for their profits or investors cashing out because they were affected by Warren Buffet’s comparison of cryptos to rat poison.
