Recently, the cryptocurrency world crossed a milestone. The value of Bitcoin has crossed over $8,000 mark. This relentless rise of this cryptocurrency has defied all expectations. Many doubt that the financial experts who were deliberately disparaging Bitcoin were doing so to protect their own interest.
Nevertheless, Bitcoin has given good ROI to its investors. If one did invest in this digital currency in August 2017, then in less than three months they have more than doubled their investment. This massive rise in the value of Bitcoin in just a span of three months has raised a red flag in the minds of Venture Capitalist biggies.
One of the vital factor about FIAT money or for that matter gold is that there’s a finite amount of them. It is said that there is a finite amount of Bitcoin too. But then what irks the financial world is that no one knows about how it was created or its secretive creator.
The Veterans do a smell test
Jim Rogers, the famous investor guru has also expressed his opinion post a technically sound ‘smell test’ on this crypto-currency. He says:
“Bitcoin looks and smells like all the bubbles I have seen throughout history.”
Warren Buffet says, “You can’t value Bitcoin because it’s not a value-producing asset…it’s a real bubble in that sort of thing.” The message behind his cryptic words was that the digital currencies are not tangible investments. Moreover, people who are betting on these digital currencies are simply gambling that the price will rise.
The Rookies stay bullish
Tommy Lee and Ronnie Moas both have a bullish view towards Bitcoin. Ronnie Moas even suggested that the price of the currency will reach $14,000. Industry insiders have also shared their opinion. They believe that a rapid price hike is not necessarily a sign of a bubble rather it represents the currencies mass adoption.
The cryptocurrency market is no different from Stock Exchange where anyone can speculate. While the veteran finance experts may sniff at Bitcoin, the rookies familiar with the technology and its potential are not worried about the bubbles just yet.