Market forecaster Jim Bianco mentions on Wednesday that some major cryptocurrencies are going to be a lot higher down the road, but one might have to sit through the bearish crypto market in the next several months, even years. “That’s got a lot of promise, and that’s really what’s significant,” says Jim. “The problem is the other driver is kind of an out-of-control casino with people betting on these coins going up and down.”
Bianco states that the coins are still extremely volatile, with declines up to 70% susceptible at any given moment. But once the adoption phase is over, cryptocurrencies will have their fundamental role in the real economy, thus having a much higher market share and price overall.
People should treat cryptocurrencies as a long-term investment, as when the frenzy settles down, they will become a lot less volatile, but less risk always comes with less reward, says Bianco.
The future of Ethereum and Bitcoin will forever be a mystery, but with sensible investment, they are nothing but another tool to get higher financial market volatility and have a place in every investor’s portfolio.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.