Despite the bearish market and constant price fluctuations, Bitcoin continues solidifying its status as the world’s leading cryptocurrency, so investors continue flowing in. Want to join their rows? Don’t hurry: you should monitor BTC price predictions first – some tech giants are quite pessimistic about Bitcoin’s future.
What might contribute to Bitcoin’s failure and make the bubble explode?
Bill Gates: “It’s kind of a pure ‘greater fool theory’ type of investment”
Microsoft founder Bill Gates has never been fond of neither Bitcoin nor cryptocurrency in general. Here’s what he says:
“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… I agree I would short it if there was an easy way to do it.”
The crypto community still remembers his sneering at having received some Bitcoins as a birthday present. Why is he so skeptical about the cryptocurrency? Gates explained that the main reason for his negative forecast is that he doesn’t see digital tokens as having any intrinsic value.
Gates declined to specify any certain timelines to his prediction, but he stays reassured that the Bitcoin market is to explode sooner or later. Despite that, the Bitcoin paper market is steadily evolving, so it will probably take years for BTC to crash.
Joe Davis: Bitcoin is speculative
The leading economist from Vanguard’s investment strategy group reckons that Bitcoin’s price performs the function of speculation only. He says Bitcoin is a poor store of value – it’s too volatile. He recommends people investing in something more tried-and-tested. His conservatism in the investment sphere can be understood. Yet, some other institutions, such as Goldman Sachs, encourage investors to explore Bitcoin’s potential.
Kenneth Rogoff: Bitcoin to shrink to $100
Another pessimistic prediction was given by Harvard Prof & ex IMF chief Kenneth Rogoff. He is widely known for hatred towards Bitcoin, and this time, he acted in the same manner:
“I think Bitcoin will be worth a tiny fraction of what it is now if we’re headed out 10 years from now…I would see $100 as being a lot more likely than $100,000.”
What is his forecast based on? He is sure that governments will rise against cryptocurrencies like Bitcoin. According to Rogoff, laws and regulations will trigger the explosion of the Bitcoin bubble. Besides, crypto enthusiasts and Wall Street experts have very different mind frames.
Why else can Bitcoin fail?
The rejection of Bitcoin futures by SEC blocks the flow of institutional money into Bitcoin. People are tired of unreliable funds and online exchanges. They want Bitcoin to represent some real value.
Apparently, bitcoin is not ripe enough, respectable enough, or regulated enough to be worthy of our markets. I dissent: https://t.co/gH5zXaKtmj— Hester Peirce (@HesterPeirce) July 26, 2018
There are many more technologically advanced coins appearing around. Ripple and Ethereum are stepping on Bitcoin’s heels, offering faster and cheaper blockchain solutions.
Bitcoin has nothing else to offer. BTC mining is no longer profitable, and upcoming technological updates (the Lightning Network) won’t put it ahead of competitors. Without any new sensational advantages, Bitcoin is doomed.
Only time will show whether pessimistic assumptions will materialize, but it doesn’t seem that Bitcoin is going to leave the scene in 2019. The show must go on!