Bitcoin Reaches All-Time High of $8,300 but Is It Built to Last?

Bitcoin reaches all-time high

The value of bitcoin has reached an all-time high, surpassing $8,300 for the first time in its history. You heard that right, the going rate for just one bitcoin is currently $8,305.18. It peaked at today’s high of $8,362.30 after bouncing back from its brief drop of 5.4% earlier this morning. This sudden decline was triggered after a large hack stole more than $30,000,000 worth of USDT, a separate cryptocurrency provided by the smaller company Tether. This low period didn’t last long and was able to quickly recover demonstrating that the digital currency could sustain the unexpected and continue to move forward. However, investors from across the country have voiced their opinions on the future of this digital currency reaching the conclusion that it’s in a bubble and will eventually come crashing down.

What do traders have to say?

A survey conducted earlier this month by Triad Securities Corp. and Datatrek Research revealed startling information from a sample of 317 institutional traders. It’s important to note that over 50% of participants were ages 45+ in a market that has historically been attractive to the younger generation. The majority of these traders worked for employers interested in the ‘buy-side’ of Bitcoin or other cryptocurrencies. However, over 30% of the sample said they haven’t bought any bitcoins and never intend on doing so while over 36% stated they have considered it. The sharpest divide was regarding the future direction of Bitcoin. The majority (39.43%) said, “this is a bubble – it must crash,” followed by 27.13% believing value will slowly rise while over 16%  stated that value will continue to surge doubling “in the next 6 months or sooner.”

An advocate of the latter option is the founder of Standpoint Research, Ronnie Moas, saying Bitcoin’s price will surge another 70% reaching its peak of $14,000 in 2018. This is $3,000 higher than Moas’s initial prediction and has an optimistic outlook on Bitcoin believing its performance on Monday is just the beginning.

There have been many positive developments during the last five months and a few of the obstacles that were in Bitcoin’s way have been knocked down. An argument can be made that the good news is still not fully reflected in the current price.

However, not everyone shares his views. The global financial firm, UBS, doubts in the future of cryptocurrencies and that it will ever have a significant role in the economy. Believing that Bitcoin is nothing more than a “speculative bubble,” UBS reported in a whitepaper last week that tax exchange rate risks are its biggest obstacle to worldwide integration.

If governments refuse to accept cryptocurrencies for tax payments, the single most important transaction in an economy, that significantly reduces demand for cryptocurrencies. Governments are highly unlikely to ever take this step.

Jamie Dimon, CEO, And Chairman of JPMorgan Chase, has also voiced his opinion on the matter validating the importance of blockchain technology while belittling the hype surrounding Bitcoin and other cryptocurrencies.

I could care less what bitcoin trades for, how it trades, why it trades, who trades it. If you’re stupid enough to buy it, you’ll pay the price for it one day…The only value of bitcoin is what the other guy’ll pay for it….The other thing I’ve always [said] about bitcoin, governments — and this is not a technological statement — governments are going to crush it one day.

The recent spike in value has people talking and makes experts question how such growth could sustain much longer. Whether or not Bitcoin has true significance in the realm of our future economy, it is clear that cryptocurrencies are here to stay.

What do you think about Bitcoin and the value of cryptocurrencies? Do you personally invest in Bitcoin or are you still considering it? Let us know if you agree or disagree with Dimon and UBS by dropping us a note below!

Remember to subscribe to our newsletter!

Follow The Scope Weekly on Twitter and Facebook and Instagram!

If you would like to become a contributor to The Scope Weekly, read our submission guidelines, and apply. For product reviews, click here.

Tags from the story
,
More from Brandon Hinojos

Son of Wu-Tang Clan Rapper is Launching ‘Dirty Coin’ Cryptocurrency

Wu Tang Keeps Legacy Alive with 'Dirty Coin' Cryptocurrency
Read More