There was a while at the end of last year when it looked like cryptocurrencies were on an unstoppable rise to world domination. Some high-profile backers, like Twitter CEO Jack Dorsey, were even claiming that it’d soon become the world’s only currency.
But things have taken a sharp turn since then with prices plummeting and questions being raised about the sustainability of such an unpredictable investment.
This week, however, Bitcoin made something of a recovery and increased in price to more than $7,000, according to Coin Desk.
Experts have suggested that this could be the start of a rise that eclipses anything that has gone before - but just how reliable is this increase and what should investors do now?
We spoke to cryptocurrency expert Bob Loukas, the founder of an educational crypto platform for traders called Bitcoin.Live, about what it all means.
So what’s behind the latest rise?
“It’s difficult to point to the exact reason for the rise, which is now significantly higher than the $6,300 price from Monday. We believe some of the success can be attributed to the growing trust towards the asset.
“Some banks are starting to show growing interest in getting more involved with digital currency services.”
Is now a good time to buy, sell or hold?
“It’s very tricky to predict the future performance of any investment, and cryptocurrencies are especially volatile and unpredictable. Because of this, predicting the perfect time to buy or sell Bitcoin is, in essence, a guessing game.
“The experts we are working with are currently predicting that the next short-term price to look at is $7,800. On the flip side, if it fails significantly we expect it to go back down to $5,000s.”
What does the future look like for Bitcoin and other cryptos?
“As the world moves more and more into the digital age and seeing the success that traders have had within the cryptocurrency space, I am inclined to lean towards the scenario where crypto becomes a widely accepted currency.
“We are witnessing this already where online retailers begun accepting bitcoin as a form of payment, most notably Expedia and Shopify.
“You could see Bitcoin becoming the new currency of the world, fully replacing existing fiat currency, but we’re looking at few decades at least before this becomes a possibility.”