Bitcoin economist: “My money is on a price rally next year“
“My money is on a price rally next year,“ Tuur Demeester, an economist and investor told the audience at Latin American Bitcoin Conference.
There is 60% chance the price of Bitcoin will rally to $1000 USD/BTC. And maybe other 40% that the price will go above in 2016. “My money is on a price rally next year,“ Tuur Demeester, an economist and investor told the audience at Latin American Bitcoin Conference.
“We're gonna see a bubble, higher highs, how high are they going to go? There is a few things to look out for. Sentiment - how are people talking. Do you see stories of people putting all their lifesaving into Bitcoin? All the scepticism goes away, like there is no other solution than for Bitcoin to go to another 5x or 10x? That's when you wanna be cautious,“ thinks economist.
He would use Bitcoin as an insurance policy for cash available, but it can be also a store of value.
“If I had a currency basket that represents $100 USD, I wanna have 0.5 or 1 USD at least in Bitcoin.“
Another use would be as a part of a speculative portfolio.
“You create a portfolio that is designed to positively respond to political distortions in a market. For example if interest rates are very low and we have a huge stock market bubble or bond bubble, I'm going to insure against that by betting on hard assets, on something that can't go just bankrupt. It could be 3-5 % of your speculative portfolio. You would have some gold in there, maybe something else depending on the circumstances.“
The economist sees Bitcoin also as a bet on an early retirement for younger people and those with more appetite for risk.
“Even the central bankers of Barbados came up with a study where in it's base case scenario, they project the price of Bitcoin in ten years to be 3 million US dollars. I am not saying these authorities are right, though these prices are not so outlandish.“
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