Cryptocurrency: Expert discusses success of Bitcoin
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Bitcoin has seen widespread anger in recent weeks following revelations of the amount of energy it takes to mine the cryptocurrency. While social media has proven useful for smaller cryptocurrencies like Dogecoin and Shiba Inu coin, Telsa CEO Elon Musk’s statement on bitcoin and his companies withdrawal from using the crypto saw prices plummet.
Mr Musk condemned the level of bitcoin’s energy use, which sent the market into free fall.
Data from the University of Cambridge and the International Energy Agency has shown bitcoin “mining” consumes around the same amount of energy annually as the Netherlands did in 2019.
This is due to the energy-high computers used to mine bitcoin around the world, often relying on fossil fuels such as coal.
However, despite the recent dip to $31,248.62 (£22,021.58) on May 23, bitcoin has seen a mild bounce back.
Read More: Bitcoin price crisis: Cryptocurrencies plunge – Ethereum and Doge down
At the time of writing, BTC was worth $35,794.26 (£25,224.99), a 0.40 percent increase over the past 24 hours.
The 24 hour high saw bitcoin reach $37,174.25 (£26,197.50) at 6.29am BST on Saturday.
Bitcoin’s all time high was $64,829.14 (£45,686.50) reached in mid April, but will the cryptocurrency reach this level again?
Experts have predicted a positive future for bitcoin, with the potential for it to smash its all time high.
Joel Kruger, a Cryptocurrency Strategist at LMAX Digital told Express.co.uk: “Bitcoin has already traded up through $60,000 (£42,283.30) and we don’t think it’s a question of ‘if,’ rather ‘when’ the cryptocurrency makes its way back through the barrier.”
So what does the future hold for BTC?
Mr Kruger said: “We think the outlook for Bitcoin is highly constructive over the medium to longer-term.
“Having said this, price does have a tendency of getting ahead of adoption.
“At the moment, we believe we’ve entered a phase where the market is now needing to take some time to pause for reflection in the aftermath of a magnificent run.
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“While we wouldn’t rule out the possibility for deeper setbacks this year, we do believe any additional declines will be very well supported above $20,000 ahead of an eventual push back towards and through the record high.”
And the crypto could be well on course on its way to $100,000 according to Katharine Wooller, the UK managing director of crypto wealth building platform Dacxi.
Ms Wooller told Express.co.uk: “Crypto has had a very odd few weeks; correcting a whopping 46 percent in 13 days, only recently recovering by 24 percent.
“Frankly, there was room for some correction – even with the recent setback bitcoin has still appreciated by a whopping 260 percent over a year.
“Most of the analysis suggests a temporary dip before continuing a trajectory towards $100k USD (£70,472.16) this year.
“Indeed, recent events support this: the driving force behind the sell-off was retail rather than institutional investors, the latter of whom are happy and staying in.
“More interestingly, a number of big investors bought into the dip, with data suggesting that 34,000 bitcoins were brought over two days this week.
“Further votes of confidence this week include paypal allowing crypto withdrawals to third parties, and rumoured appetite for crypto within Apple Pay.
“In my opinion, expect erratic trading conditions in the coming weeks but a medium term very positive outlook!”
For anyone investing in cryptocurrency, there are risks as the markets can fluctuate wildly.
Experian warns there are three primary risks associated with buying and owning bitcoins.
- Bitcoin’s value may decrease after you buy your bitcoins.
- Someone could get access to your private key and take your bitcoins.
- You could lose your private key that allows you to access your bitcoins
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