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Will it Go to US$10,000 or US$100,000?

Will it Go to US$10,000 or US$100,000?
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Written by Christopher Liu, Chartered Financial Analyst at The Motley Fool Canada

Flash crash in December 2021 was in Bitcoin (CRYPTO: BTC) is still fresh in the minds of investors. As of January 6, 2022, Bitcoin is trading at $43,160.93 USD. The price fell on each of the first six trading days of the year, as the cryptocurrency lost about $80 billion in market capitalization.

While it is difficult to predict the price of risky assets, Bitcoin loyalists remain optimistic. Goldman Sachs Analyst Zack Bundle predicts that the cryptocurrency will reach $100,000 in value if it continues to take market share from gold. On the contrary, Sir John Cunliffe, Deputy Governor of the Bank of England, said that Bitcoin could be “worthless”. He added that investors should be prepared to lose everything.

Bold Predictions

Bitcoin price predictions are mixed, although some experts are very optimistic. “The most experienced educators in this field expect to receive $100,000 in bitcoin in the first quarter of 2022 or before,” said Kate Waltman, a certified public accountant from New York.

Technical data and blockchain analyst Matthew Hyland has an even bolder prediction. He believes that Bitcoin will inevitably cross the $100,000 threshold and catalyze a jubilant rally. The price could reach $250,000 in January 2022. Its basis was a 150% increase in 2017 ($8,000 to $20,000) after Thanksgiving.

Bitcoin threat

Besides potential regulatory frameworks by central banks, Ethereum A threat to bitcoin. Based on industry data, the world’s second largest cryptocurrency by market capitalization is nearly 50% shy of overtaking Bitcoin as the largest cryptocurrency. BTC has provided equivalent returns in the past few years. However, the increasing market capitalization of Ether somehow indicates that investors are looking for other multi-bag cryptocurrencies other than Bitcoin.

Safer alternatives

If extreme volatility worries you, TSX has much safer alternatives to Bitcoin. Blockchain Technologies HIVE (TSXV: HIVE) (NASDAQ: HVBT) and I can (TSX: MOGO) (NASDAQ: MOGO) could make huge gains. Both are growth stocks expected to explode in 2022.

The HIVE blockchain stock has performed astonishingly in the past three years with a gain of 861.90% (112.23% compound annual growth rate). In 2021, the total return was 41.42%, but the stock mirrored the performance of bitcoin. As of January 6, 2021, the stock price is $3.03. The $1.16 billion crypto-mining company is involved in mining and selling Bitcoin, Ethereum and Ethereum Classic. Mining operations in Canada, Iceland and Sweden.

MOGO is trading at a discount ($3.85 a share), although market analysts expect a potential return of between 185.71% and 260.65%. The stock price can go up to $11 (low) or $13.50 (medium) in 12 months. This $339.95 million fintech company provides digital solutions to help customers take better control of their financial health.

Besides digital spending account and others, customers can buy and sell Bitcoin through MogoCrypto. In the third quarter of 2021, MOGO reported growth in revenue, subscriptions and services of 58% and 126% compared to the third quarter of 2020. Management plans to accelerate growth investments in 2022 to increase member and revenue growth.

Potential risks to investors

The Bank of England’s Cunliffe said, “Their pricing can vary greatly and [Bitcoin] It could theoretically or practically drop to zero.” A blog post by central bank employees responded, “Bitcoin has failed to meet many of the features required of the currency and it risks being inherently volatile.” Do not invest in Bitcoin if you have a fear of getting lost. There will be ups and downs, so the chances of incurring losses instead of profits are high.

Beyond Bitcoin 2022: Will it go to $10,000 or $100,000? He debuted in The Motley Fool Canada.

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Deceitful shareholder Christopher Liu has no position in any of the stocks mentioned. The Motley Fool owns and recommends Bitcoin and Ethereum.

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