In anticipation of the market debut of cryptocurrency alternate Coinbase, bitcoin hit a record high of over $64,000 Wednesday morning, in keeping with information from Coin Metrics, though it settled at around $62,000 by 4:45 p.m. EST.
But billionaire investor Mark Cuban does not assume this surge would be the peak for bitcoin.
“It’s not inconceivable that the number of people that own [bitcoin] could more than double,” Cuban informed CNBC Make It simply earlier than Coinbase went public.
Although, “[t]hat’s not to say the price won’t increase in volatility and/or go down in price significantly,” he says, “but the opportunity for it to go much higher certainly exists and I think over the long-term, it’s the more likely case.”
Cuban has been at the forefront of the latest wave of curiosity in cryptocurrencies and blockchain technology. Personally, Cuban has a portfolio of bitcoin, Ethereum and other digital coins (and he has a Coinbase pockets); he owns crypto-assets, like NFTs, or nonfungible tokens; and he has invested in companies within the area. For instance, he invested in NFT marketplace Mintable in March and acquired Coinbase shares on Thursday, he stated.
Like different supporters of bitcoin, Cuban sees the cryptocurrency a retailer of worth that may respect over time – some bitcoin evangelists even predict the cryptocurrency will hit $300,000 by year-end.
“The price of [bitcoin] is built on supply and demand,” Cuban says, as there’s a finite provide of bitcoin obtainable because of its algorithm. “We know what [the] supply is. There is no reason for the demand not to increase.”
Coinbase co-founder Fred Ehrsam additionally told CNBC on Wednesday that he does not imagine the cryptocurrency market has reached a top.
“As somebody who’s been working in crypto for 10 years, I’ve heard that statement hundreds, if not thousands, of times,” Ehrsam stated. “I think it will be volatile from here, but that’s just the nature of such a huge technology coming into existence.”
However, those wary of bitcoin say it’s too speculative, volatile and risky to spend money on. There additionally could possibly be future regulation by the government. The newest Bank of America Fund Manager Survey, for instance, discovered that about 74% of respondents think bitcoin is in a bubble.
Bitcoin is buying and selling at round $62,650 as of Thursday at 11:23 a.m. EST.
This story has been up to date to replicate that Mark Cuban purchased shares of Coinbase.