Bitcoin Sliding to $900? Expert Predicts Dot-Com Bubble Scenario
Bitcoin has not yet stabilized, and may slide by another 90%, if the past is a predictor.
Bitcoin has settled below $9,000 for a few days now, but sliding trading volumes and a bearish mood may lower the prices again.
At least according to Mike McGlone, Bloomberg Intelligence commodity strategist, the drop is far from over, and the leading digital asset may slide to as low as $900.
"I spend a lot of time reading about this, and the more research I do, the more bearish I get. It’s very similar to these Internet companies we saw in the late nineties," said McGlone for Bloomberg.
His chief point of analysis is comparing the Bitcoin price to the movement of the Amazon stock. However, the Bloomberg predictions see Bitcoin going a bit higher, at least in the short term:
But even with the bust of the dot-com bubble, the following technological growth saw stocks and businesses grow much larger.
The other argument is that Bitcoin's forks have created a much larger supply. However, this expert view is inaccurate, since forks work on different blockchains, and some are not easy to access and use. Bitcoin remains a unique digital asset, and the usage of forked coins is very different compared to Bitcoin.
Almost all coins, but especially Bitcoin, are facing technological challenges. While one answer is to create new digital assets, Bitcoin may also attempt to evolve and scale.
Satoshi dogmatism is unwise, as some possibilities and trade-offs were not known early on. Here's one of the architects of Microsoft Windows, growing it from 7 million to 500 million users: https://t.co/VERAzXeaqg— Tuur Demeester (@TuurDemeester) February 13, 2018
When it comes to Bitcoin, trading only affects less than 10% of the circulating supply of coins. There are still many inactive wallets, and the price crashing may reveal how much users are willing to hold onto the coins, and not sell. With daily trading between 500 and 700,000 Bitcoins, most of the assets are sitting away in wallets.
And in hindsight, toward the end of 2016, a price of $900 was greeted as incredible success for Bitcoin, and many sold to realize profits even at this rate.
As for predictions that Bitcoin's price may go to zero, Vinny Lingham has stated he has placed one final order to buy as much BTC as possible for a few cents each, and hold the coins out of sentimental value.