Ronnie Moas, Standpoint Research founder and stock research analyst told CNBC that bitcoin prices could shoot up to $5000 before the end of this year. Moas believes that the price of the popular digital currency can skyrocket within a few months and cross the $5,000 number before 2017 is over. He told reporters that one of the reasons why the price was skyrocketing was because its popularity was spreading like wildfire at the moment.
The demand for Bitcoin is also expected to shoot up and see a dramatic increase in its price because only 21 million of bitcoins are meant to exist.
According to CoinDesk, a leading bitcoin portal, the price of bitcoin has tripled during this year. On December 31 last year, the price of bitcoin was $968. But on June 5, it was trading at close to $2600. The price has continued to rise with every passing week and on June 11, it hit a record price of $3,025.47.
Moas says that failing to act on Bitcoin right now would be more painful than losing any money on it and he has invested into the digital currency. Moas has invested some dollars in ethereum, litecoin, and bitcoin through Coinbase.com. In the weeks to follow, the research analyst plans to release a report of 40 pages on investing in cryptocurrencies. At the same time, he plans to invest more money on bitcoins.
Moas says that things are going to get a little hysterical in the next six months to one year because bitcoin prices are going to shoot up till they hit the bubble. He reasons that too little money is currently invested in cryptocurrencies at present, enabling them to absorb much more money without reaching saturation point.
According to an estimate from McKinsey Global Institute, the value of debts and stocks worldwide had shot up to $212 trillion back in 2010. Data released by CoinMarketCap shows how market capitalization of bitcoin, litecoin and other digital currencies has grown from $20 billion at the beginning of the year to $100 billion. In spite of this growth, it is still less than one-tenth percent of the total capital markets around the world. CoinMarketCap places the market value of bitcoin at around $42 billion.
Many Wall Street analysts feel that blockchain technology can have a major impact on how things are currently being operated. The popularity of Bitcoins in the gaming industry has also grown rapidly as there are now a number of online casinos and online poker rooms who accept bitcoins.