Is there a bright future for cryptocurrencies
Crypto Madness: Apocalyptic Forecast for Dogecoin
Bitcoin has more than doubled at its peak since the beginning of the year and reached a new all-time high at $ 64,863 last week. Dogecoin - now in 5th place among the largest crypto currencies according to market cap - beats this development by far and has increased in value by up to 8,700 percent in the same period. For the further development of the fun crypto currency, however, this expert sees black.
"I see the Dogecoin as a speculative bet, as it will likely implode if the bubble bursts one day," says Eddie Ghabour, author and managing partner of the Key Advisors Group, in an interview with Yahoo Finance. Of course, Dogecoin and many other Altcoins are an exciting topic of conversation because of the enormous price movements. “But I don't see them as real assets,” said the analyst.
“I look at the crypto market exactly like the tech bubble in the 1990s.” It burst in March 2000 and something like this will happen again. “We are in a bubble again. This is the reason why the prices of many assets are rising so much. And crypto is the most speculative of all asset classes, ”says Ghabour.
Bright future for Bitcoin and Ethereum
To label him as a crypto skeptic would, however, fall short of the mark. Because he believes that Bitcoin and Ethereum in particular have good development opportunities in the future - and not just for the coming months, but for “many, many years”. One of the reasons: In contrast to Dogecoin, they have just developed into an asset class that institutional investors are increasingly discovering for themselves.
However, according to the investment expert, investors who are active in the crypto sector would have to be willing to take risks. Because short-term price movements of 20 or 30 percent in both directions are normal here. Even if it takes some effort to buy when everything seems to crash: He himself used the setback last weekend to buy more in his private crypto portfolio.
Looking ahead to the next few quarters, Bitcoin and Ethereum are likely to remain among the most profitable investment options, said Ghabour. And even if there was another big crash like the one after the 2017 rally, these two would not collapse completely.
The price development of Dogecoin is unbelievable and does not have to end at the current level. The target price of one dollar per DOGE has been circulating in online forums for months. With the ever steeper increase, however, the risk of a severe setback also increases - especially since the crypto currency offers little practical added value and, in contrast to Bitcoin, is inflationary. Therefore, at most, very risk-taking investors should dare a short-term trade here.
Those who want to be active in the crypto market in the long term should, on the other hand, rely on the heavyweights Bitcoin and Ethereum. Here, too, it can rumble heavily at times, but the long-term prospects are correct.
Note according to §34 WPHG to justify possible conflicts of interest:
The chairman of the board and majority owner of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has taken direct and indirect positions on the following financial instruments referred to in the publication or related derivatives that benefit from any price development resulting from the publication: Bitcoin, Ethereum.
Author Nikolas Kessler has taken direct and indirect positions on the following financial instruments mentioned in the publication or related derivatives that benefit from any price development resulting from the publication: Bitcoin.
Shares or derivatives that are discussed / mentioned in this article are in the "SHAREHOLDER Depot" of THE SHAREHOLDER.
Book tip: The crypto decade
Authors: Küfner, Robert A.
Number of pages: 208
Release date: 20.09.2018
Format: Soft cover
- Should contain the Java collection framework Multimap
- Are companies afraid of non-traditional candidates?
- Is Realme X Pro waterproof
- What is your favorite Gundam model
- Can my truck run on marine diesel
- Why is football more popular than hockey?
- Why is metal oxide an acid
- Which is the best 4th generation laptop
- Snapchat Product How old is Bobby Murphy
- What do you think of Louis Farrakhan
- How does Jessica Jones get her super powers
- Should Apple make its own modems
- What are some certifications in renewable energy
- Still used today in Latin
- Trust your president
- Which companies issue iPhones to their employees
- Why is my metabolism so slow
- Is that Hatsune Miku
- What do you think of Muslim women
- How much does LinkedIn Elevate
- What is Sony Brand Positioning
- What is the conversion rate in PPC
- Which database system does Facebook use
- How effective is dermaroller on stretch marks