‘It Might Not Last Longer’: Expert Warning As Bitcoin Price Plunges

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Bitcoin had a horror five weeks. Photo / 123RF

A college professor has issued a stern warning regarding Bitcoin after weeks of turbulence with the price of the cryptocurrency.

For the sixth week in a row, Bitcoin is in the red, despite an all-time high of nearly US $ 69,000 ($ 102,643) on November 10.

Now, at the time of writing this article, Bitcoin is only based on US $ 46,600, which means the blockchain has lost US $ 23,000 in value or 33% in just a few weeks.

This is a point that has not escaped Eswar Prasad, senior professor of economics at the American Ivy-league Cornell University.

“Bitcoin itself may not last longer,” he told CNBC last week.

The expert, who is the author of “The Future of Money: How the Digital Revolution is Transforming Currencies and Finance”, is a proponent of blockchain technology.

However, Professor Prasad believes Bitcoin is not as good as other cryptocurrencies and will soon be phased out as better coins take the world by storm.

Cryptocurrency “is destructive to the environment” and “is not growing very well,” he explained.

He’s not wrong. Bitcoin, which has a market capitalization of $ 885 billion, produces 36.95 megatons of CO2 per year through its transactions, which is similar to New Zealand’s carbon footprint.

The professor also said that the hype is why Bitcoin has reached many new highs rather than its actual usefulness as a coin.

“Since Bitcoin doesn’t serve well as a medium of exchange, I don’t think it will have any fundamental value other than what the investor’s faith gives it,” he explained.

The professor was still optimistic about cryptocurrency as a whole; he said blockchain technology was “fundamentally transformative” and had forced banks to “start thinking about issuing digital versions of their own currencies.”

Professor Prasad is not the only top scholar to warn against Bitcoin in recent weeks.

Another professional investor believes that the tumultuous few weeks for Bitcoin spell the end of the token.

Marc Chandler, chief market strategist at Bannockburn Global Forex, warned that recent events were “fatal” for Bitcoin.

“The idea that as it matured volatility would subside didn’t really materialize,” he told Bloomberg.

“Volatility is deadly and its other supposed attributes, like a hedge against inflation, seem spurious.”

Bitcoin’s slide has fallen below a key level that is worrying experts.

It is now near a 200-day moving average of around US $ 46,720, which is bad news for the coin.

Another economic forecaster said that a 200-day moving average below $ 46,000 was a “yellow flag” and pointed out that Bitcoins will soon be worth only $ 10,000 each if the decline continues.

Well-known investor Louis Navellier said earlier this month: “I would consider a drop below US $ 46,000 (the 200-day moving average) a yellow flag and a drop below the low. from the spring of US $ 28,500 to be a massive double top completed, indicating a drop below US $ 10,000, which incidentally would match many of the multiple declines of over 80% of its history on multiple levels. “

However, other experts are optimistic about the cryptocurrency, particularly Bitcoin, in the 2022 horizon.

Tommy Honan, head of corporate partnerships at Australian cryptocurrency exchange Swyftx, told news.com.at earlier this month that Bitcoin could easily hit the US $ 150,000 mark. at its peak next year.

Greg Rubin, head of trading at Australian firm Global Prime, also believes Bitcoin will hit six digits early next year, but with that comes a warning.

He estimates that the top-ranked coin will reach between $ 114,000 and $ 130,000 in the first quarter of next year.

However, after that, prices would drop dramatically, where they remain.

“Looking at the scale of probabilities, it looks like the most likely end of the bull run that started in 2020 will be next year,” he told news.com.au.

The price of Bitcoin would plunge to $ 10,000 to $ 20,000, a decline of about 70%, where it remains.

“When volatility subsides, it [Bitcoin] will meander at low volume for years, ”he explained.

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