$50,000 Bitcoin Could Come Sooner Than You Think, According to Portfolio Manager

Bitcoin’s meteoric rise is set to continue this year, with prices destined to hit $50,000 in the not-too-distant future, according to cryptocurrency portfolio manager Jeet Singh. Though Singh isn’t the first to predict $50,000 bitcoin, his forecast for when it could occur has taken some investors by surprise.

Volatility to Be Expected

Speaking at the World Economic Forum in Davos this weekend, Singh said the market was poised to continue higher this year.  In forecasting bitcoin’s continued rise, he reminded investors that volatility is to be expected and that fluctuations of 80% are quite common.

“We will probably go through a suffering period of volatility” as bitcoin approaches its next $10,000 milestone, Singh said, as reported by Express UK. He then compared bitcoin’s volatility to that of early Microsoft and Apple shares.

“If you look at Microsoft or Apple, when they went public their stocks were very volatile because the market wasn’t mature,” he added.

Crypto market volatility has been the subject of great debate, especially among institutional investors eager to get in on the action. Since hitting record highs near $20,000, bitcoin’s value virtually halved over the next four weeks as South Korea explored new regulations to curb excess speculation in the market. The result was the swift banning of anonymous cryptocurrency accounts, a measure that fell well short of doomsday scenarios predicting an all-out ban on domestic brokerages.

World Economic Forum

Of course, Singh’s outlook on cryptos failed to sync with the rest of the crowd at Davos. Although the annual meeting is run by a Swiss non-profit organization, the World Economic Forum is typically viewed as a conference for the establishment where central bankers and policymakers can promote traditional theories of economic development and monetary policy. The theme of this year’s conference was Creating a Shared Future in a Fractured World. 

That being said, the 2018 meeting featured considerable discussion on cryptocurrency, including a one-hour discussion called The Crypto-Asset Bubble, which featured two notable supporters of bitcoin in Neil Rimmer and Jennifer Zhu Scott. Rimmer is the co-founder of Index Ventures SA while Zhu Scott represents a group called Radical Partners.

In Rimmer’s view, bitcoin is a compelling investment because it is “completely trustworthy with no central authority. Some people who invest in it do not trust their government.”

This view contrasts sharply with recent comments made by Bank of Canada (BOC) Governor Stephen Poloz, who offered a more conventional view of cryptocurrency by comparing it to gambling.

“A lot of words have been used but I think the main thing is, buyers should be aware it is much closer to gambling than investing,” Poloz said in an interview with CNBC.

In general, central banks do not support cryptocurrencies, but are much more receptive to blockchain technology. The BOC in particular has been experimenting with blockchain to speed up the clearing and settling of equities.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi