Over the past 13 years, Ronnie Moas, stock research analyst and founder of Standpoint Research, has given more than 900 stock recommendations to those willing to listen. And now he is turning his attention to cryptocurrencies.
On Wednesday, July 5, Moas shared his thoughts in a letter to his clients that Bitcoin is likely to double to $5,000 in 2018, and reach a range of $25,000 to $50,000 in the coming decade. He also announced that he purchased “a little bit” of litecoin, bitcoin, and ethereum in a Coinbase.com account.
Now that equity investors who hadn’t previously been involved in cryptocurrencies are starting to make bets on the industry, many consider this to be stone cold evidence that there is a certain level of exuberance surrounding bitcoin, ethereum, and other blockchain assets.
“There are only 21,000,000 bitcoins in circulation and the world will fight over those 21 million coins as confidence in currency and other investments deteriorates,” Moas wrote in his letter, clearly referring to the algorithm that caps the amount of bitcoin that can be created. “I have little doubt that 1% of the money in cash, bonds, stocks, and gold will end up in cryptocurrencies.”
So far this year, Bitcoin has more than doubled to as high as $3,000 as adoption increased, more corporate investors started backing blockchain technology, and Ether, the second-biggest digital currency, started to become popular in fundraising rounds for tech startups. Due to concerns that digital currencies can’t reach wider acceptance at a fast enough rate and that their gains have been overdone, Bitcoin slid to as low as $2,544.40 from its high on June 12.
Despite being “a bit concerned that there may be a near-term bubble,” Moas remains fairly optimistic that there is potential to make triple-digit returns in the long run. “It’s starting to spread like wildfire right now. In the next 6 to 12 months you’re going to have a bit of hysteria,” explains Moas. “However, this has a long, long way to go before it gets to bubble territory.”
For Moas, he believes that investors should secure cryptocurrency positions through services like the one offered by Trezor.io. However, he does remind his clients that his post is for informational purposes only, and it should not be thought of as investment advice.
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