2017 has been for certain Bitcoin’s year. In spite of numerous speculations, the most popular virtual coin has increased to a value nobody would’ve imagined, reaching almost $20,000 on December.
Recently, an increasing number of analysts and speculators are claiming that Bitcoin will be suffering a great fall. It started at the ending of December, with a 30% price drop, getting to the price of $13,248.
Some financial analysts are saying that this decline of the price is not to be taken seriously, because it is not the first time when Bitcoin is acting this way. They also claim these fluctuations are just stepping stones to a major increase.
David Alan Stockman, former Director of the Office of Management and Budget and Wall Street bear has stated that the Bitcoin fever is fueled by ‘stupid speculators’ and that this ‘Bitcoin bubble’ will conclude in a disastrous ending.
Invited on CNBC’s Futures Now , he also said that it will all burn down in a major crash and that all these speculators will ‘burn their hands’ and maybe learn a lesson. This recent profecy isn’t exclusively related to cryptocurrency market but to stock market as well.
In September 2017, Stockman was warning the investors that a correction between 40% – 70% is very close and high-probable to happen. He added that this market is an irrational one, overheated by the multitude of diehard traders.
In the past two years, the price of Bitcoin has met an incredible growth of 3000%. The price swings has raised many arguments on Wall Street regarding the real value of Bitcoin. The cryptocurrency has split the analysts into two ‘camps’. Some of them think that the value of Bitcoin is overrated and a bit extreme. The other part of analysts like Mike Novogratz and McAfee think that the value of the virtual coin could reach the number of hundreds of thousands.
Altcoins such as Ripple, Litecoin and Ethereum have also increased lately. Stockman hasn’t labeled the coins in any way and he concluded that the coins might double in price size but might reach the zero value also. The virtual coins are not real money because real money used in real transactions have one characteristic that cryptocurrencies don’t possess : ‘stability’.