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If there’s something more volatile in the crypto world right now than the price of cryptocurrencies, it’s the predictions of the price of cryptocurrencies. Over the past week or so, several prominent economists and experts weighed in on the price of Bitcoin – and the predictions varied from awfully bearish to exceptionally bullish.
On the foreboding-view side, three acclaimed American economists reiterated their pessimism regarding Bitcoin.
The Nobel prize-winning economist and a professor at Columbia University, Joseph Stiglitz, is extremely pessimist about Bitcoin’s future. He argues that currently the cryptocurrency market is quite unregulated because it’s still relatively small, but once it’ll grow and become more significant, the authorities “will use the hammer.” Stiglitz further explained that the demand for Bitcoin would utterly drop if regulations would prevent from using it for criminal acts such as money laundering.
Another famous economist and a Professor of Economics at Harvard University who doesn’t see a bright future for Bitcoin is Kenneth Rogoff. Rogoff had already stated back in March that it is more likely that the price of Bitcoin would plummet to $100 than reach $100,000 within a decade, and now he reasserted this claim and agreed with Stiglitz’s hypothesis that the regulators would completely decimate it.
The last renowned economist who is extremely skeptical about Bitcoin is Nouriel Roubini. Roubini, who is famous for his prediction of the 2008 financial crisis, determined that Bitcoin does not qualify to be a currency since it does not meet the attributes of money; it’s important to note that this claim clashes, at least partially, with a recent serious research from Imperial College London. Roubini also added that something that shifts 20% in one day cannot be a stable store of value, and jeeringly commented that Bitcoin is not even accepted at Bitcoin conferences.
On the auspicious-view side, we can find a few interesting figures.
Tom Waterhouse, the Australian bookmaker and the CEO of William Hill Australia, revealed in a tweet that a “well known crypto expert” has asked to place a bet of $AU8.5 million that the price of Bitcoin will surpass the price of a Berkshire Hathaway share (currently trading at around $290,000) by 2023. If proven successful, this bet could earn the anonymous high-roller $AU1.2B (yes, one point two billions).
Big Bet: Well known Crypto expert has just requested a bet of $8.5m AUD to win $1.2bn that a Bitcoin will exceed the price of a Berkshire Hathaway share (c.$280k) by 2023. Have put him in touch with large syndicate – hope he can get set! pic.twitter.com/C20AHzH2k9
— Tom Waterhouse (@tomwaterhouse) July 11, 2018
Another person who is bullish on Bitcoin (and coincidentally is also another Tom) is the Wall Street strategist Thomas Lee, the Managing Partner and the Head of Research at Fundstrat Global Advisors. Lee predicts that by the end of this year, the price of Bitcoin could reach the vicinity of $25,000. Lee explains that the rising cost of mining Bitcoin could hamper supply, which in turn would thrust the price higher.
The last recent bullish Bitcoin prediction is perhaps the most interesting one. TenX cofounder, Dr. Julian Hosp, reaffirmed his position that the Bitcoin price can get to $60,000 by the end of this year. What’s fascinating about this forecast is that at the end of 2017 (when BTC was at around $15,000) Hosp had predicted that the price would first plunge to as low as $5,000 – de facto foreseeing the last few months’ crash.
Finally, it is entertaining to refer to one ultimate “exotic” prediction made by John McAfee at the end of 2017; for the sake of humanity, let’s all hope we won’t have to see the consequences of him being wrong…
When I predicted Bitcoin at $500,000 by the end of 2020, it used a model that predicted $5,000 at the end of 2017. BTC has accelerated much faster than my model assumptions. I now predict Bircoin at $1 million by the end of 2020. I will still eat my dick if wrong. pic.twitter.com/WVx3E71nyD
— John McAfee (@officialmcafee) November 29, 2017