Bitcoin is making waves in the investment community with its meteoric rise to prominence and crazy volatile price changes. And naturally, no one is sure what to make of it all. Is it a bubble? Will it continue to rise with uncompromising growth? Is it already too late to invest?
That's why we had a chat with an expert on the matter to learn more about what's to come in the future in regards to cryptocurrencies. All responses below are from Paul Puey, the CEO of Edge (formerly Airbitz).
ADM: What does the surging Bitcoin price mean for the wider cryptocurrency world?
Puey: It means stronger awareness of the broader market and the additional technology and potential of smart contracts and tokenization. Media brings awareness of bitcoin. Once people buy in, they'll quickly jump down the rabbit hole of
broader decentralized blockchain tech.
ADM: How high will the Bitcoin price climb, and do you agree with the forecast from longforecast.com?
Puey: The upside forecast on longforecast.com is very feasible, but bitcoin's historic volatility means we could see some significant lows on the way there.
ADM: Are we watching a Bitcoin bubble forming, and if so, when will it burst?
Puey: It will never 'burst'. It will short term 'correct'. And I don't believe bitcoin is a bubble. It's the pin that will pop the bubble of government money.
ADM: Should the average investor consider just buying coins, investing in a cloud mine, or buy their own mining equipment?
Puey: Buying coins. Everything else is very uncertain, requires trust in a 3rd party, or access to
cheap resources like mining hardware or electricity.
ADM: Recent news puts nicehash in the spotlight for security and digital wallets in general. What can people do to protect their coins?
Puey: Very simple. Make sure you wallet has YOU holding the keys. We've been preaching this since 2013. People lose money in custodial services (banks). Bitcoin was designed to make that dangerous. Controlling your funds is the safest way to hold bitcoin.
ADM: What people should know before investing in Bitcoin?
Puey: Know that you're not 'investing'. You're supporting the paradigm shift in money. If you're trying to trade bitcoin like just another asset, you both don't understand it, and will likely get burned as it doesn't behave like any other tradable asset. Buy it, use it, hold it.
ADM: What are your predictions for the ‘next’ crypto that might make a strong climb?
Puey: Due to scalability issues in bitcoin, I'd keep my eye out for Bitcoin Cash and Ethereum. While
Ethereum is having scaling issues right now, they at least have a clear roadmap to solve it. If the Lightning Network proves feasible, then Bitcoin will easily rule as THE currency and payment network. If not, other cryptos like Bitcoin Cash, Dash, Ethereum, and Litecoin have a strong potential to displace it.