Retail

Bitcoin Seen Topping $50,000 Long Term as it Vies With Gold


2/2

© Bloomberg. A pile of coins representing Bitcoin cryptocurrency sit grouped together in this arranged photograph in London, U.K., on Wednesday, Feb. 7, 2018. Cryptocurrencies tracked by Coinmarketcap.com have lost more than $500 billion of market value since early January as governments clamped down, credit-card issuers halted purchases and investors grew increasingly concerned that last year’s meteoric rise in digital assets was unjustified. Photographer: Chris Ratcliffe/Bloomberg

2/2

(Bloomberg) — Bitcoin’s price could exceed $50,000 over the longer term as the digital asset vies with gold for investment flows, according to cryptocurrency exchange Luno and brokerage OSL.

“We’re talking about over the next three, five, 10 years slowly inching away at gold’s market capitalization,” Vijay Ayyar, head of Asia Pacific with crypto exchange Luno in Singapore, said in an online question and answer session with Bloomberg Tuesday. If that happens, “you are way over $50,000,” he said.

Bitcoin quadrupled last year, eventually reaching an all-time high of almost $42,000 in early January before sliding back by about $10,000. The rally split opinion, with some commentators pointing to increased interest from long-term investors and others citing speculative buying.

While Bitcoin has been popular for trading, “increasingly the new to market money that we are seeing is buying Bitcoin as a hedge to inflation and as digital gold,” said Matt Long, head of distribution and prime brokerage at digital-asset platform OSL in Hong Kong.

Predicting a price for Bitcoin is challenging but it’s likely to rise longer term as funds and family offices assign 0.5% or 1% of their portfolios to it, Long added.

Read More   Small business credit worth Rs 2.32 lakh crore at highest risk of default: Cibil

Bitcoin, which has climbed 9% this year, was trading at about $31,500 as of 12:47 p.m. in Tokyo on Tuesday.

©2021 Bloomberg L.P.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.