With Bitcoin becoming the talk of the town owing to its gigantic growth, experts believe that the currency has a much higher growth potential and can grow four folds next year.
Digital currency Bitcoin is nearing INR 6.4 lakhs ($10,000) and has gained a multi fold growth in just a matter of months. While many financial experts have warned in the past about investing in Bitcoins, its unstoppable growth is sure raising active conversations in the industry regarding its mainstream usage.
The newest update in the story has come from Michael Novogratz, the former manager for Fortress Hedge Fund who has claimed that this crypto currency could grow four folds in the next 13 months reaching a whopping INR 26 lakh ($40,000).
"Bitcoin could be at INR 26 lakhs ($40,000) at the end of 2018. Ethereum, which I think just touched $500 or is getting close, could be triple where it is as well,'' informed Michael Novogratz to CNBC.
There's a big wave of money coming, not just here but all around the world," adds Novogratz. The former manager is also intending to roll out a digital assets fund of $500 million via his new company, Galaxy Investment Partners.
''What's different about these coins than other commodities? there is no supply response here, so it's a speculator's dream in that as buying happens there's no new supply response that comes up. So every price move gets exaggerated. It's going to get exaggerated on the way up. There will be 50 percent corrections. It will get exaggerated on the way down,'' adds Novogratz.
The value of a bitcoin in the year 2010 stood at a mere $0.08 and while its trading value has sky rocketed the amount of transactions involved with the currency have not soared at a similar pace. This hints that the crypto currency is solely being utilized as an investment and not as a currency for shopping commodities or services.
The soaring growth of Bitcoin has concluded in thousands of new traders betting big on the currency while new ventures are also utilizing it to raise investments and bypass the transparency measures.
Experts however also believe that the crypto currency has transformed into a bubble which is detached from the real world and that it could witness a massive crash. As per Economist Nouriel Roubini the growth of this online currency is a speculative bubble and is bound to conclude in a disaster.
The currency which was once the sole mode of payments on the dark web and for hackers is not centrally administered and miners from across the globe facilitate its transactions for some commission. Bitcoins are usually kept in a digital wallet and can be used for currency exchange and buying products and services.
If you plan to invest in the currency then bear in mind that Bitcoin is extremely volatile and crypto currency funds do charge a significant money for investing your money in the currency. The value of this digital currency is also dependent on the expectation that it will continue to balloon and will become the dominant cryptocurrency.
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