Miners of the cryptocurrency Bitcoin might want to watch out and prepare for a predicted crash of the digital currency's value, as one Wall Street expert stated that Bitcoin might lose as much as 90 percent of its value.
Peter Boockvar, a veteran of Wall Street, has warned Bitcoin miners that the market for the said cryptocurrency will see an imminent crash. He did, however, not state whether the cryptocurrency's value will steadily drop or suddenly plummet, just that it would do either of those soon.
"When something goes parabolic like this has, it typically ends up to where that parabola began. I wouldn't be surprised if over the next year it's down to $1,000 to $3,000," stated Boockvar. He was referring to the current cryptocurrency bubble, which seems to have increased in value dramatically, making Bitcoin one of the most sought after ways of earning easy money right now.
Boockvar then went on to claim that this behavior in the market has happened before. For economists, there is even a term to describe this phenomenon: classic bubble. The name is as such since it might suddenly burst due to its rapidly increasing size. He also linked the collapse of Bitcoin's value to the increasing interest rates worldwide, where he blames central banks and Federal reserves for the cryptocurrency craze.
For those who have not been keeping track of the value of Bitcoin, a year ago, the said cryptocurrency just amounted to as much as $1,000 per coin. Now, it has reached great heights of $11,000 per coin. Should Boockvar's predictions ring true, then this value enjoyed by miners might be short-lived. Right now, it seems that Boockvar may be correct since there has been a relatively small plunge documented last month.
That said, this does not mean that it would not rise in value again should it crash. When that will happen though, remains to be seen given how the cryptocurrency scene is always shifting.
