Source: Coin Desk
Everyone from Wall Street executives to venture capitalists have been weighing in their thoughts on the digital currency. Some are more sceptical than others. But throughout the debates, bitcoin has continued to climb.
It’s largely thanks to individual investors. According to Bespoke Investment Group, the number of crypto accounts on Coinbase has almost tripled to 13 million in the past year.
More Are Yet to Buy Bitcoin
And because more people are still yet to buy in, analysts have extremely bullish views on the coin going forward.
Hedge fund manager, Mike Novograt, said bitcoin could end the year at US$10,000. Had he said this at the start of 2017, investors would have thought he was crazy. But now, it’s looking like a real possibility.
Thomas Lee of Fundstrat, believes the coin could rise to US$11,500 by mid-2018.
But are these estimates not optimistic enough?
Time and time again, bitcoin has surprised analysts. They’ve had to increase their estimates multiple times just to keep up with the rapidly climbing price.
Yet so far, it’s only individual investors and very small hedge fund investors buying into bitcoin. What happens when the big money jumps in?
Big Money Doesn’t Want the Risk
Super funds, billion dollar fund managers and institutions are yet to buy into bitcoin. It’s not that they don’t want to make double digit returns in a day. They don’t want to accept the risk of buying into an unregulated market.
There are still real risks surrounding bitcoin investment. What happens if an exchange is robbed? What happens if an exchange withholds your bitcoins due to liquidity reasons? What about the daily buying limits?
These are just some of the risks that the big money doesn’t want to take on.
However, when a lot of these exchanges are finally regulated, you can bet a lot more money will move into cryptos. Until then, any bitcoin price prediction might not be far too low.
Junior Analyst, Money Morning
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