The controversial Bitcoin investment revolution will continue to “see-saw in coming weeks” but cryptocurrency mania is set to grow, according to Nigel Green, founder and chief executive of deVere Group.
As reported, yesterday Green backed the Bitcoin revolution to continue to rise and rise, but after it fell by US$2,500 on Friday after hitting record highs, he reiterated that there will be undulations as the price of Bitcoin corrects itself during the recent dramatic rise in price and interest in the leading cryptocurrency investment.
“Bitcoin investors have been on a rollercoaster this year,” said Green, pictured left. “The world’s biggest cryptocurrency soared to a new record of US$17,000 on Thursday before nosediving by US$2,500 hours later.
“This correction is an appropriate one after such frenzied trading. We should expect to see Bitcoin see-sawing in coming weeks. Sharp moves are likely, followed by subsequent corrections. This is due to the increased interest in this exciting new alternative currency, and especially with the Chicago Board Options Exchange allowing investors to trade Bitcoin futures in the next few days, driving hikes.”
Green is not the only well-known financial figurehead to back Bitcoin, with Virgin tycoon Richard Branson also admitting that he invested and has enjoyed huge returns from Bitcoin.
Earlier this week, according to various press reports, the Winklevoss twins, famously known for suing Mark Zuckerberg after claiming he stole their idea for Facebook, are now Bitcoin billionaires. Cameron and Tyler Winklevoss won US$65m from the Facebook lawsuit, and reportedly invested US$11m of their payout into Bitcoin in 2013, amassing one of the largest portfolios of Bitcoin in the world. Their investment is now reportedly worth more than US$1bn.
“Bitcoin’s impressive rally has piqued interest in the phenomenon of cryptocurrencies in recent days and pushed demand further skywards,” Green added. “I believe we will look back on this point as the start of digital currencies becoming mainstream. They can no longer be dismissed as a fad or fraud. Of course, Bitcoin and other cryptocurrencies will rise and fall – but all traditional currencies do the same.
“As they become ever-more established, cryptocurrencies will gain in popularity and the growing cryptocurrency mania will likely result in the launch of more and more digital currencies to meet demand.”
As reported yesterday, Green also urged caution. He said: “Bitcoin remains a major gamble as it is very much an ‘unchartered waters’ asset – we’ve simply not experienced this before. Also, an asset that goes almost vertically up should typically raise alarm bells for investors. In addition, many would argue that there’s limited underlying economic value.”
“Today’s digital world needs cryptocurrencies. One or two of the existing ones will succeed, whether it’s Bitcoin or not remains to be seen. But the dawn of the financial technology era has arrived,” the deVere CEO added..