In an interview with CNBC Roger McNamee who is one of the earliest investors in Facebook and a venture capitalist said that 2018 would be a do or die for Bitcoin. 2018 is the year which many people have predicted that Bitcoin will crash. The investor noted that Bitcoins rise in 2017 was major because of speculation and noted that the coins performance in 2018 would be very important for its survival.
During the interview, Mr. McNamee stated that: “Bitcoin is a very small market when compared to the larger financial market. However, it has had a very good year, but it has been a speculative mania. People should understand that if a mania goes on for a long time, it becomes self-fulfilling. This means that even if there is a crash the overall industry remains.”
McNamee the current performance of Bitcoin which has a market cap of $246 billion and with a $12 million 24hr trading volume as huge enough to attract more big investors. If the market grows big enough, then it would eventually become a part of the global financial market.
The investor went on to say that: “With the current situation of Bitcoin, there are very many people who are willing to invest in Bitcoin and make it a long term investment. This will be evident in 2018 which looks like will be the revelation year.”
The Bitcoin market has not been stable. Just a week ago the market suffered a severe dip of almost 30%. It, however, went through that and is currently recovering. However what makes Bitcoin hard to predict is its volatility levels which are very high.
McNamee does not see Bitcoins volatility ending soon. In fact, he has stated that we should expect more volatility in 2018. He, however, went on to say that how the volatility will be settling down is what will determine whether Bitcoin is a long term investment venture.
“The swings will still be there. There will be ups, and there will be downs. You know that when the move settles, it will tell you more about the role of Bitcoin in the long term. This will, however, be not the end of the story about Bitcoin.”
Stock analyst Ronnie Moas on his part thinks that Bitcoin could hit a $28,000 in 2018. Apart from Moas Dr. Julian Hosp the founder of TenX predicts more volatility for Bitcoin in 2018. Her prediction was highs at $60,000 and lows of $5,000. Bitcoin is working very hard to be mainstream. It, however, has to overcome several challenges like hackers among other things that scare away investors.