Crypto Market Watchers Worried about Bitcoin Volatility, Speculative Nature

Bitcoin remains firmly planted in headlines, continuing a streak of several months in which it has been one of the hottest topics around. Over the past few days, the largest cryptocurrency by market cap was hit by a series of skeptical comments from executives, entrepreneurs, billionaires, and regulators.

On Wednesday, long-time gold analyst Michael DudastoldCNBC that cryptocurrency-based assets represented a “dicey investment.” Dudas, a partner at Vertical Research, believes that the extreme volatility of Bitcoin is a problem for investors. Despite referring to cryptocurrencies as “speculative investments,” he thinks the market is here to stay, especially after CBOE and CME Group launched Bitcoin futures trading.

DataTrek Research co-founder Nick Colas went so far as to offer some Bitcoin price predictions. HetoldCNBC that Bitcoin might swing between $6,500 and $22,000 in 2018, probably demonstrating an even higher volatility compared to 2017. These figures are less generous than the $60,000 target provided by TenX co-founder Julian Hosp.

Ira Epstein, director at Linn & Associates, said in aninterviewwith Bloomberg that Bitcoin was more of a “speculative vehicle” than a regular currency that could be used for buying goods.

“I cannot go to McDonald’s with my Bitcoin and get some coffee,” Epstein noted.

William Galvin, secretary of the Commonwealth of Massachusetts,saidthat the US state’s top regulator might issue a warning on Bitcoin because it “doesn’t pass the smell test” and is “entirely speculation.”

Billionaire Tilman Fertitta, Landry's founder and CEO,findsobvious similarities between the cryptocurrency boom and the dot-com bubble. However, he thinks the market is here to stay and is concerned that cryptocurrencies are not insured.

FiREapps CEO Wolfgang Koesternotedthat cryptocoins are too volatile to be considered by companies. According to Koester, state-issued cryptocurrencies will be suitable for corporations, which “are waiting for governments to issue those digital currencies so that they can take advantage.”

Currently, Bitcoin is trading at $14,422, facing some resistance afternewson South Korea’s intentions to regulate the market.