Digital currency wallet Breadwallet co-founder and chief marketing officer (CMO), Aaron Lasher, has projected that the leading cryptocurrency Bitcoin will reach a market capitalization (cap) of up to $5 trln in the next 10 years as of early September 2017, according to Market Watch.
However, he claimed that the digital currency can experience some setbacks along the way.
In an interview, Lasher claimed that the current exemplary performance of Bitcoin and other virtual currencies could be followed by a very brutal bear market.
“As a longtime Bitcoin holder, I’m greatly enjoying the recent price action, even though I understand that this bull market will likely be followed by a pretty brutal bear market. Are cryptos in a bubble? Yes, absolutely. Is that a bad thing? Not necessarily.”
Bitcoin’s current market performance and other Lasher predictions
Bitcoin has continued to perform strongly in the market and achieved another record on August 31 to bring its total cap to more than $78 bln. The leading cryptocurrency has already surpassed the likes of Starbucks in terms of market cap. The phenomenal upward trajectory has understandably led to speculations of a possible bubble that is about to burst.
Lasher, meanwhile, has issued a warning to neophyte digital currency investors to proceed with caution in their investments. He advised that the investors should do extensive research before getting involved with the cryptocurrencies.
“I wouldn’t recommend any investor get involved with cryptos without extensive research beforehand. It’s not a get-rich-quick scheme, and people who blindly throw money at it are likely to a) risk too much, b) buy too high, and c) sell too soon.”
Moreover, Lasher projected that there will be 10 virtual currencies worth over $25 bln within 10 years. The data from Coinmarket.com, however, showed that only Bitcoin and Ethereum have surpassed that level so far.