Crypto bears are having a heyday. 2017’s crypto euphoria is unceremoniously replaced by a steep market downturn, numerous ICO scams, and unrelenting attacks on crypto exchanges – affirming pessimistic outlooks of naysayers.
As the negative headlines continue to proliferate, some crypto insiders remain bullish about the potential for digital currency to thrive not only in the future but this year as well.
Armed with bold predictions and sound rationale, they are maintaining an optimistic outcome despite a slew of negative indicators.
Julian Hosp Makes Another Bold Prediction
Julian Hosp, co-founder and president of TenX, is known for his prophetic understanding of cryptocurrencies. In December 2017, when the price of Bitcoin approached $20,000, Mr. Hosp predicted that the digital currency would soar to $60,000 but will first drop to $5,000.
He was right about the drop.
Although Bitcoin hasn’t technically dropped as low as $5,000, it’s come close. CryptoSlate’s price data shows that Bitcoin reached a current trough of $5,800, which, for argument’s sake, is close enough to the radical fall that Mr. Hosp predicted.
Having reached his predicted low point, Mr. Hosp is optimistic that Bitcoin’s value can creep back up to its peak. At the RISE tech conference, Mr. Hosp commented to CNBC:
“Back then, December, price was at $20,000 all-time high. I predicted for 2018, we’re going to see $5,000 and $60,000. So $5,000, we pretty much hit it, so let’s see if we can do the $60,000. I’m still quite confident.”
To be sure, he provided stipulations to his prediction.
Mr. Hosp acknowledged that a “massive positive event” must occur for Bitcoin to reach $60,000. For instance, the release of a Bitcoin ETF or a country announcing something he described as “very, very positive for bitcoin.”
However, Bitcoin prices are beginning to rebound, and Mr. Hosp sees another plausible path to $60,000:
- Bitcoin price hits $10,000 by the end of August 2018
- Price momentum pushes Bitcoin back toward $20,000
- Accompanying press and media attention push Bitcoin’s price toward $60,000
The Rationale Behind the Predictions
While Mr. Hosp’s predictions possess a degree of whimsy, other crypto experts articulated more tangible reasons to believe that Bitcoin and other cryptocurrencies could soon surge in value.
Ethereum co-founder and ConsenSys founder isn’t explicitly focused on pricing. While he acknowledged that increased value for digital tokens like Ether also boosts the platforms mindshare, he demurred that “We let price take care of itself.”
Instead, Mr. Lubin is focused on infrastructure. While Bitcoin and other cryptocurrencies were in a veritable free fall, countries have boosted regulatory efforts, and some clarity is emerging about the future legal implications for digital currencies. For example, last month, the SEC decided that Ether should not be classified as a security.
Moreover, Ethereum is expanding its infrastructure to hasten transaction times and to provide a more comprehensive blockchain experience. As Mr. Lubin noted, a future iteration of Ethereum will allow “tens and hundreds of thousands of transactions per second.”
Although Julian Hosp might be reading the crypto tea leaves to determine future price points, Joseph Lubin is confident in the legal and technological developments surrounding this burgeoning economy. In both cases, these crypto insiders are rejecting the negative narrative about the crypto market, and expressing optimism about its future.
Cover Photo by Tim Gouw on Unsplash