I recently read here that bitcoin bull Tom Lee has reduced his target for the price of bitcoin at the end of 2018 from $25,000 to $15,000. It’s actually amazing that people are willing to make put their reputation on the line about something as volatile as cryptocurrency, but as the above graphic shows, Mr. Lee is not alone in making bold predictions.
It’s interesting to note that two American economists are right down at the bottom with predictions of $100. They are far from the only “experts” who have a negative view with Bill Gates and investor Peter Schiff both expecting bitcoin to go to zero.
So should we all be buying bitcoin and betting on it going to a million dollars, or is that just reckless speculation?
First of all, no-one knows where this is really going, and there’s certainly a lot of speculation involved. Before making a decision, I would suggest reading up on the reasons people think bitcoin will reach a certain value. Yes, you should study up on the views of Tom Lee and Jim Cramer, as well as those of Joseph Stiglitz and Kenneth Rogoff. In fact, Peter Schiff is a good person to follow if you’re looking for the ultimate bitcoin bear.
Here’s another way to look at it. The bitcoin price as I write today is around $5,500:
How would you feel if you bought one bitcoin today and the price went to zero and you lost $5,500?
How would you feel if you didn’t buy bitcoin and the price went to $250,000? How about $1,000,000?
These two questions alone should tell you a lot about the way you view risk. There’s no correct answer, just what works for you.
FYI I bought originally at $2,500 and just bought a little more at $5,500 – that’s not advice, just disclosure. And no, I don’t have a price prediction for end of 2018, 2022 or ever!
If you simply enjoy reading the predictions there are a few more here, although this was from October before Tom Lee adjusted his outlook.
Disclaimer: This should go without saying, but the information contained in this blog is not investment advice, or an incentive to invest, and should not be considered as such. This is for information only.