uite astonishingly, Bitcoin surged to an all-time high of ~$7,600 USD just a few days ago. Are we going to see the bubble burst at $8,000? Or it is just the naysayers saying?
No Stopping Bitcoin From Reaching All-Time High
There seems to be no stopping the Bitcoin train recently, as it climbed to its highest ever price to reach ~$7,600 USD. But is the gain superficial, or is there real substance to its momentum? Let’s check some recent facts to know more on this matter.
With Bitcoin Futures Coming, Bitcoin Is Set To Attain The Same Ranks As Oil And Gold
If you missed out on last week’s news, CME Group- a firm that is listed on NASDAQ’s stock market; is the world's leading and most diverse derivatives marketplace; is handling 3 billion contracts worth approximately $1 quadrillion annually (on average) – is gearing up for Bitcoin futures trading by this year-end.
The effect? Bitcoin price shot upwards from a low of $4,300 on October 1st r to a new all-time high, representing more than 50% increase in just one month.
Some Big Names Are Already Predicting The Bubble To Burst Soon
With the recent huge jump in price, we reflect back on the saying that goes; “The bigger you are, the harder you will fall”. Let’s hear some experts' opinion on this matter:
- Warren Buffett, one of the greatest investors ever, says “You can’t value bitcoin because it is not a value-producing asset, it is a real bubble in that sort of thing.”
- JP Morgan chief executive Jamie Dimon, recently called cryptocurrency a concerning “novelty”.
- Severin Cabannes, CEO of French banking giant Société Générale, says “We are very interested not in bitcoin, but in blockchain, and the underlying technology.
- Joe Pindar, director of product strategy at digital security firm Gemalto says “With so many new cryptocurrencies being launched on almost a daily basis, there is no doubt that the cryptocurrency bubble is going to burst.
In other words, they are saying that cryptocurrencies are not tangible investments. They don't generate earnings or pay dividends.
How do you really value them if they have no intrinsic or "book" value? Those who buy bitcoin are simply betting that the price will go up. That’s not a good sign for a solid investment, isn’t it?
Thread Carefully They Say
If you are into Bitcoin, just make sure that you don’t put everything in one basket. It is always good to diversify your investment so that when one crashes; you still have others that will keep you afloat.
Category: Team WhaTechCompany about: Tech junkie by profession and passionate about anything from the digital world, movies, games and reading. He loves writing and hopes you enjoy his writing as much as he does. Eza, is also known as Don in the virtual world, but don’t him me wrong, he's not a mafia type he's really a nice chap and a devout family guy.
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