Julian Hosp, a cryptocurrency entrepreneur, says that the rapid rise of bitcoin is not over yet. However, there is a catch.
“I think we’re going to see bitcoin hitting the $60,000 mark, but I also think we’re going to see bitcoin hitting the $5,000 mark,” stated Hosp who is a co-founder and president of TenX, a company that wants to make it simpler for people to spend virtual currencies.
He stated: “The question though is, ‘Which one is it going to hit first?'”
Many high-profile critics and some national governments have warned regarding the dangers of investing in cryptocurrencies, which they say are possible to crash since nothing underpins their value.
The forecast of Hosp would represent a $45,000 rally from the present price of bitcoin — or a collapse of $10,000, underscoring the volatility of the largest cryptocurrency in the world.
Following a rally to a record high of more than $19,800 during the midway through December, the prices of Bitcoin collapsed last Friday. The cryptocurrency lost a third of its value in one day, briefly plunging below $11,000 before regaining some of the ground that it lost.
According to Coinbase, on Tuesday, Bitcoin traded at $15,185.
Hosp informed CNBC’s “Squawk Box”: For experts that have been in the market, this was actually a welcome dip.”
Hosp said that industry insiders had anticipated the price of bitcoin to drop, given the “dangerous” elevation of value that it has observed over the past few months.
Hosp added: “This dip for us was very, very healthy, and some of us have used it to buy a little bit more because suddenly we had 40-45 percent discount to all-time highs.”
Hosp stated that he is certain that Bitcoin will drop again.
“Definitely,” Hosp stated. “I don’t think right now, but I think, in the long run, we will always see a little bit of an up move, and then a dip down.”
He compared the current interest in Bitcoin to the dotcom bubble that began around 20 years ago and warned that a consolidation of digital coins would possibly take place in the future.
Hosp stated: “I don’t think crypto winter is going to come in the next couple of months, but I think if we look down one to two years, there is definitely going to be a big compression in the market.
“I don’t think it’s going to be a bubble that’s just going to burst and everyone is going to lose their money, but I think it’s going to be that all the coins and all the assets with very little use or value are going to get sorted out.
“The money is going to flow into those assets in this cryptocurrency space that really delivers value, have new technology, and are being used by people,” he added.
TenX imposes fees for a card and a wallet that are designed to make digital currencies more useful for transactions.
Hosp did not share his thoughts regarding which cryptocurrency has the most longevity. However, he did state that compression of the market will decrease their numbers.
“I see Bitcoin more as digital gold,” said Hosp, “rather than a currency that is going to be used on a daily basis.”