For quite some time, Bitcoin was the hottest trade of the decade.
At almost $20,000 near the end of last year, it outperformed stocks, bonds, gold and real estate.
And for many investors, it became the “can’t lose” trade of the decade.
It didn’t last. It’s been extremely volatile and has been falling. Recently, it plunged from $7,500 to less than $5,800.
- Ethereum (ETH) fell from $699 to $417
- Ethereum Classic (ETC) fell from $15 to $12.70
- Ripple (XRP) fell 65 cents to 43 cents
- Litcoin (LTC) fell from $120 to $74
- IOTA (MIOTA) fell from $1.80 to 90 cents
All thanks to hackers that stole millions of dollars worth of digital coins, government regulator crackdowns, Google’s move to disallow crypto advertising, and a host of other issues. In fact, one of the latest triggers for downside was the freezing of Coinrail, which recently noted:
“On June 10, there was a system check due to the hacking attempt at dawn. At present, 70% of your coin rail total coin / token reserves have been confirmed to be safely stored and moved to a cold wallet and are in storage.”
That’s not to say the run higher in each crypto currency is over.
But, it is just a stark reminder that obscene volatility exists in this sector.
However, the rally may be getting underway again. And some billionaires and analysts strongly believe BTC could run to $250,000 in value by 2022.
Billionaires like Tim Draper see Bitcoin hitting $250,000 by 2022, as he continues to buy and hold a good deal of cryptocurrencies.
"I am buying more. I feel that crypto and Bitcoin are the future. Fiat is the past. I do still have to hold some fiat currency for everyday transactions today, but I suspect that that will change over the next few years. I cannot wait to be able to go to a store and make purchases using cryptocurrencies. Fiat currency will eventually become as passe as trying to pay for coffee with pennies," he told The Street. "Price-wise, we'll continue to see Bitcoin move higher. I've revised my estimate up to $250,000 four years out, so we'll see Bitcoin trade around the $250,000 mark in 2022."
Dan Morehead, founder of Pantera Capital, has noted that Bitcoin would be "highly likely to have exceeded $20,000 within a year," as quoted by Bitcoin Exchange Guide.
In short, don’t allow the recent chaos to chase you away from what could be a lucrative trade. We still see significant growth ahead for most crypto currencies. Stay tuned.