23 Feb Bitcoin could hit $50,000 by end of 2018
Sometimes it’s easy to forget that those of us investing in Bitcoin and cryptocurrencies right now are still the early adopters – and the potential for significant gains down the road is massive.
Bitwise Asset Management Vice President of Research and Development Matt Hougan recently appeared on Bloomberg Markets to discuss leaving the ETF industry in favor of “going all in on crypto” – where he made some seriously bullish statements on Bitcoin’s and other cryptocurrencies’ long-term potential.
“I was looking around for a new, potentially generationally-significant opportunity with interesting challenges – crypto is exactly it. The problems that crypto is trying to solve have total addressable markets in the trillions of dollars. That’s hugely interesting and exciting. And yet the institutional framework for evaluating crypto assets are still new and nascent … So it’s just an exciting space with an enormous amount of potential.”
Nevertheless, we are still in the very early stages of Bitcoin and crypto, so those willing to accept the volatility need not be scared off by sudden and sharp corrections. Says Hougan:
I think the challenge that people have is that they forget that crypto is basically at its core a technology. And like any early-stage technology, we’re a long way from mainstream adoption. Right now crypto’s primary use – Bitcoin’s primary use – is either as a store of value, [or] you’re starting to see it in money transfer. It’s among the early adopters – but that’s true of any technology, right? When digital cameras came out, they weren’t very effective. When cell phones came out, they weren’t very useful. But it changes over time.
Hougan also astutely claims that those who doubt Bitcoin and cryptocurrency simply can’t, or aren’t willing, to look years ahead, explaining:
“I think the people who can’t imagine Bitcoin as a payment mechanism – can’t imagine it competing with gold – are just forgetting that technology increases at an exponential rate, and they’re unable to look forward to two/three/five years and imagine what it can do at that point … At the core, it is a generationally-important technological breakthrough with massive potential application. So I think there are skeptics but, for the early adopters, there’s significant opportunity”