23 “Mainstream Wall-Street Investors” Share Their Predictions About The Fate Of Bitcoin Over The Next Five Years
By: Yitzi Weiner
Tags: Wall Street, Bitcoin, Wisdom, Investing

Recently, we ran a series in Buzzfeed and ThriveGlobal interviewing more than 75 Cryptocurrency experts about the fate of Bitcoin over the next 5 years. Understandably most of their answers were very bullish about Crypto. I then turned to Wall-street investors and analyst to share their predictions about Cryptocurrency. Their answers might surprise you.

Jillian Manus, Structure Capital

My Wall Street Background

“ Jillian Manus is an experienced banking and media executive, a technology investor and entrepreneur. She is the Managing Partner of Structure Capital, a Silicon Valley-based venture capital firm that invests in early-stage technology companies. In her role with Structure Capital, Jillian provides strategic support to founding teams focused on creating value in underutilized assets and excess capacity. She serves on the boards of several of her portfolio companies, including Hyp3r, Iggbo, and Liquiglide.

More Info. about Structure Capital:

Invests in seed and early-stage companies, 140 total

Portfolio includes Uber (first-round investor), Salesforce (early investor), among others.

Structure Capital isn’t explicitly focused on funding underrepresented entrepreneurs, 30% of its portfolio is comprised of female founders as compared to 7% in the industry as a whole.

Created and built companies that have been acquired for hundreds of millions of dollars.”

My Predictions About the Fate of Bitcoin Over the Next 5 Years

“Unregulated investing opportunities, like initial coin offerings, may prove a risky prospect for entrepreneurs — but that doesn’t mean that all bitcoin-related products are bad.

It’s dangerous, it’s very dangerous. On one hand, we want to be supportive of this, because this gives opportunities, definitely, to fuel new companies. But on the other hand, there’s a lot of irresponsibilities that go with this. There’s a lot of fraud that’s being created.

Initial coin offerings are just one of many applications being tested for cryptocurrencies like bitcoin. In an initial coin offering, investors are given a token of digital currency in exchange for their investment.

ICOs — if they’re based on just a white paper, and they’re just raised on that — then that’s a problem and that’s a scam. But on the other hand, if they have SEC filings, if they have [due diligence] packages, if there’s some product that we can invest in — then I think that’s an interesting opportunity.”

Jordan French, editorial staff at TheStreet.com

My Wall Street Background

“Jordan French is a freelance multimedia journalist who covers finance and technology. An engineer and former enforcement attorney at the Federal Energy Regulatory Commission, he is the cofounder of five companies, earning recognition from Inc., CIO magazine and Forbes for his work in entrepreneurship. The cofounder of BeeHex, the NASA originated 3D food printing company, he spends his spare time writing and tending to the hens at Lisbon Hill Farms, a cage-free egg farm in New Hampshire. “

My Predictions About the Fate of Bitcoin Over the Next 5 Years

“What we do know is that cryptocurrencies and Bitcoin in particular are maturing into an asset class that behaves as a “”safe harbor”” against inflation, technological uncertainty, and macroeconomic uncertainty. Like gold and other precious metals, Bitcoin shows the characteristics and trading patterns of a “”safe haven”” asset.

Less likely is the advancement of cryptocurrencies as a wholesale replacement for fiat currencies. The most interesting displacement opportunities are appearing in geographies with distressed local currencies, including Venezuela, Yemen, San Marino, Central African Republic and Puerto Rico. More narrowly, unbanked populations in countries with significant gaps in GDP per capita — for example, Brazil — show the beginnings of substitution but many hurdles remain.

The nascent derivatives market around most cryptocurrencies, including Bitcoin, will continue to mature. Higher quoted prices for Bitcoin are, frankly, a near certainty, as demand appears to outstrip supply, bid and ask spreads remain wide and the opportunities for various forms of self dealing and single-party trading, short-selling abuses, and other fraud remain present.”

Ric Edelman, Founder and Executive Chairman, Edelman Financial Services

Aaron Clamage

My Wall Street Background

“Ric Edelman, founder and executive chairman of Edelman Financial Services, is widely regarded as one of the top financial advisors in the field. He was ranked the nation’s #1 Independent Financial Advisor three times by Barron’s and was named among the country’s Top Wealth Advisors by Forbes magazine in 2017. Ric is also the 2017 recipient of the IARFC’s Loren Dunton Memorial Award, a lifetime achievement award for his substantial contributions to the financial services profession and the financial interests of the public, and was named one of the “”10 most influential figures”” in the advisory field by RIABiz in 2013. Ric is an award-winning radio and television personality and a #1 New York Times bestselling author. His ninth book, The Truth About Your Future, was published in March and became an instant New York Times Best Seller. Ric is an inductee of the Financial Advisor Hall of Fame, sponsored by Research magazine, a Distinguished Lecturer at Rowan University, a resident expert for Dr. Oz and a member of the editorial board of the Journal of Personal Finance.”

My Predictions About the Fate of Bitcoin Over the Next 5 Years

There is no question that digital currency is the future, and Bitcoin is currently the dominant one. But the technology is still under development. So it is impossible to say whether Bitcoin will survive as the coin of choice, or whether it will be replaced by another coin — perhaps one yet to be introduced. Remember that Visicalc and Lotus123 were once the dominant spreadsheet programs, and both lost to Excel. Even if Bitcoin survives, no one yet knows what the value of each coin will be. For these reasons, anyone buying bitcoins should do so with the understanding that they need to hold their coins for years, and be prepared for them to become worthless.

Elliott Pretcher, head of computer analysis at Elliott Wave International

My Wall Street Background

Elliott Prechter’s fascination with technology led him to attend MIT in 2002 and ultimately to join Microsoft in 2006. His interest in financial markets intensified during the 2008 real estate crash, and he left Seattle and Microsoft in early 2011 to help start an algorithmic hedge fund in Las Vegas. In late 2012, he joined Elliott Wave International, where he now serves as head of computer analysis, developing the EWAVES artificial intelligence system for Elliott Wave Analysis. Elliott also writes the open-access publication, EWAVES Flash, which discusses trading theory and updates readers on program developments.

My Predictions About the Fate of Bitcoin Over the Next 5 Years

“My article in the September 2010 The Elliott Wave Theorist (I can send the article) was strongly optimistic on Bitcoin at a time when it was trading at 6 cents. Elliott Wave International was the only financial firm in the world to cover Bitcoin at that nascent stage. Few people knew what Bitcoin was; fewer cared.

Bitcoin for pennies turned out to be the greatest buying opportunity of all time.

Today the psychological landscape is inverted. The price explosion and attendant manic sentiment have dwarfed the South Sea Bubble, the Canal manias of the 1830s, and even the Tulip mania of 400 years ago. Bitcoin’s rise has spawned 1400+ clones, most of which are high-tech, pump-and-dump schemes, which investors have eagerly bid up.

Dogecoin, for example, is a swiftly cobbled-together Bitcoin clone. Its innovation? Changing the icon to a dog. Yet its market cap hit a recent high of $2 billion.

Bitcoin was lean and mean in 2010, but today its monolithic blockchain has hit a scalability wall. It’s so unusable that business adoption has declined for the past two years. The emperor is wearing no clothes, yet people have been selling their houses and accumulating debt to buy coins at record high prices.

The crypto-bust has already begun. Bitcoin’s collapse from $20,000 (touched on December 17, 2017) should be even wilder than its ride up from 6 cents. Bitcoin prices will eventually head back to triple digits or lower, and most alt-coins will go to zero. EWI’s cryptocurrency Pro Service will provide real-time forecasts along the way.

As with electronics in 1929 and the internet in 1999, the bust will not deter the bright future for cryptocurrency. Technical hurdles will eventually yield now that we know that decentralized, uncensorable voluntary monetary systems are possible. There’s no going back.

Walter Pehowich, EVP Investment Services, Dillon Gage Metals

My Wall Street Background

“Walter Pehowich serves Dillon Gage Metals as a Senior Vice-President, Precious Metals Investment Services.

Pehowich has over four decades of precious metals investment service experience. He began his career at Bache in 1977, as part of their commodity accounting department. He was quickly promoted to the retail trading desk of the precious metals trading department.

Walter remained at Bache through a series of acquisitions. In 1981 they were acquired by Prudential Financial to form Prudential-Bache Securities. A decade later, the firm was renamed Prudential Securities. And finally, in 2011, the firm was acquired by Jefferies Bache, becoming Jefferies Investment Bank.

While at Jefferies, Mr. Pehowich managed a variety of investment and commercial grade precious metal products. Pehowich holds a Series 3 Securities license, authorizing him to sell alternative investments in commodities and futures contracts.

Pehowich is based in New York City.”

My Predictions About the Fate of Bitcoin Over the Next 5 Years

“What does the future hold for Bitcoin in the next five years? Just ask some big names in the financial industry about their views on Bitcoin and you will seemingly get the same answer from them all.

Jamie Diamond calls it a fraud. Warren Buffet calls it a mirage. Morgan Stanley recently said that the Bitcoin’s real value might be zero.

It doesn’t matter what you call it, a currency, a commodity or just a product, the mere fact that you can trade it gives it value.

One can argue that Bitcoin represents an “”intangible”” product. If that’s the case, why does the CBOE and CME exchanges give Bitcoin a value?

Nonetheless, it seems like the cryptocurrency craze will continue.

Many say the real money to be made are by the ones who can create their own digital currencies and bring them to the market. It seems everyone is looking for the next Bitcoin and that is where the problems will begin to develop — too many lookalike products that saturate the market. I expect that over the next few years, when these new products emerge, the government will have to regulate them somehow and this action will ultimately crush the little guy holding these unknown digital currencies.

Our government cannot continue to ignore these products, especially without knowing who’s conducting these transactions.

So in the meantime, if you have a stomach for volatility and are willing to risk all your money with these kinds of investments, understand that the financial guys didn’t get to where they are today by buying and selling so-called “”intangible”” assets.

Buckle up for a rough ride.

Mitch Steves, Equity Analyst, RBC Capital Markets

My Wall Street Background

Mitch Steves is an analyst at RBC primarily focused on Networking Equipment and SMID-Cap Semiconductor companies. In 2016, he was noted as a “Rising Star of Wall Street Research” according to Institutional Investor Magazine in three categories Telecom & Networking Equipment, Semiconductors and IT Hardware/EMS. He started at RBC in 2011 and launched coverage in the second half of 2015. Prior to this he held positions at Gleacher and Company covering Hardware and Networking equipment and worked as an Investment Banker at Cowen and Company. He holds an Economics degree from the University of California Berkeley

My Predictions About the Fate of Bitcoin Over the Next 5 Years

“While the cryptocurrency space has many risks, the opportunity appears vast with constant technology updates. By utilizing decentralized computing and open-source software, a multi-trillion dollar market can emerge for cryptocurrencies. Applications like Bitcoin could create the next generation of the internet or a decentralized world computer without a third-part intermediary. If there’s one positive item we can agree on, it’s that the blockchain has never been hacked. What happens if we build on top of this secure layer?

However, this decentralized future comes with risks. A majority of storage systems for Bitcoin are hackable and governments have no incentive to catch a criminal who is stealing a currency that they do not back. Computers are already being hacked to steal compute power and smartphones could be next. Public display of transactions reduces privacy, making all transactions transparent. There is also a risk of large scale manipulation to approve malicious forks or price manipulation of a coin.

Cryptocurrencies have a potential to create a multi-trillion dollar market, but we must be aware of the risks that could affect this market at any given time.

Trevor Koverko

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My Wall Street Background

“Prior to Polymath, Trevor Koverko is a Silicon Valley entrepreneur, blockchain speaker, and cryptocurrency investor.

Trevor founded eProf.com, an online education platform, and Digital Assets International, a leading tech private equity firm.

Trevor graduated from Canada’s leading business school, Ivey, and was formerly a National Hockey League draft pick of New York Rangers in 2005.

In 2015, Trevor’s Oculus Rift-based project became the world’s first VR exit. He has since invested in dozens of ICOs and was an original advisor/investor to the $30 billion USD Ethereum project.”

My Predictions About the Fate of Bitcoin Over the Next 5 Years

“Bitcoin is currently used as a speculative investment and store of value like gold.

But when scaling solutions such as the Lightning Network emerge, the benefits of Bitcoin increase dramatically along with its price.

Ove the next 5 years, I expect bitcoin to begin to function as it was origionally intended to based on Satoshi’s whitepaper: As a medium of exchange.

In other words, it will become money not just gold.

Consumer and business will use bitcoin to buy things and transact; not just speculate with.

This means bitcoin will emerge as a payment network and begin to compete with VISA and the US Dollar.

And the market cap will start with the letter T.”

John R. Sarson, Managing Partner, Blockchain Momentum, LP

My Wall Street Background

“John R. Sarson is Managing Partner for Blockchain Momentum, LP.

John graduated with a B.A in History from the University of Notre Dame. Prior to founding Blockchain Momentum, LP, John was Regional Vice President of Guggenheim Partners. He also led financial advisor education and distribution in New York City and surrounding areas. John’s experience and training with quantitative strategies comes from previous employers; BNY Mellon, Lord Abbett & Co, and Claymore Securities. “

My Predictions About the Fate of Bitcoin Over the Next 5 Years

“We believe Asia-news-weary investors have underreacted to Mitsubishi Bank’s epic announcement to launch, custody, and trade digital currencies. There are few financial sectors in the world that act more conservatively or deliberately than the one in Japan, and Mitsubishi bank, Japan’s largest bank, just made 4 huge bets on the long-term existence and viability of digital currencies. These announcements will have enormous impact on South Korean legislators and financial institutions. South Korea is now left with essentially no choice except to follow Japan’s lead and fully commit to embracing digital currencies or else risk sacrificing their countries banking sector on the altar of indecision/over regulation.

The prohibition of digital currencies- which had been so badly spooking the markets- is no longer a viable outcome. Traditional banks around the world will spend 2018 and 2019 assimilating digital currencies into their stable of regulated financial assets. Doing so should spur demand for Bitcoin and other digital assets well beyond today’s prices. $100,000 Bitcoin in five years is easily achievable IF it remains the most prominent and demanded among all digital currencies.

We recommend investors hold full positions in Bitcoin and other large cap cryptocurrencies.

Jonathan Johnson, President of Medici Ventures and Overstock.com Board Member

My Wall Street Background

“Jonathan Johnson is president of Medici Ventures, Overstock’s subsidiary that oversees a portfolio of blockchain technology and fintech businesses, which include tZERO, and investments in Bitt.com, PeerNova, ripio, factom, SettleMint, IdentityMind SpeedRoute, FusionIQ, Blue Ocean, Spera, and Symbiont. In this role, Johnson is responsible for continuing Medici Ventures’ efforts to pioneer growth and innovation in applying the blockchain to financial systems and beyond.

Under Johnson’s leadership, Medici Ventures has invested in several cutting-edge blockchain technology firms, successfully completed the world’s first blockchain-based stock offering on its tZERO platform, and was a featured presenter at the Monetary Authority of Singapore’s prestigious Global FinTech Hackcelerator.

Johnson is also a member of Overstock.com’s board of directors, and served as the chairman of Overstock’s board of directors from 2014 to 2017, transitioning to the position after five years as the company’s president, and later, as the acting CEO and executive vice chairman of the board. Johnson joined Overstock in 2002 as the company’s general counsel, and has held various business and legal-related “

My Predictions About the Fate of Bitcoin Over the Next 5 Years

“In the next five years, I think it likely bitcoin will become the de facto global currency. No longer will the world quote the price of a barrel of oil or the value of the Euro is terms of U.S. Dollars, but in bitcoin (or some fraction of a bitcoin). Governments will be issuing digital fiat currencies. This will accelerate the adoption of bitcoin and other cryptocurrencies. Billions of people who are today unbanked, and thus not now equal participants in the global and digital economies, will be transacting with each other in bitcoin and other cryptocurrencies using digital wallets.”

James Dowd, Founder/Managing Director, North Capital Private Securities

My Wall Street Background

“James Dowd is Founder and Managing Director of North Capital Private Securities (NCPS), a registered broker-dealer focused on the distribution of exempt securities; North Capital Investment Technology (NCIT), which provides technology for the financial services industry; and North Capital Inc., a registered investment advisor. NCPS is the broker-dealer for many securities funding platforms in the seed equity, real estate, private fund and cryptosecurities markets.

Prior to forming North Capital, Mr. Dowd, who has 33 years of experience in the global financial markets, was a Senior Managing Director and Head of the Hedge Fund Advisory and Fund of Funds Team at Bear Stearns. Before Bear, Mr. Dowd was responsible for arbitrage strategies at Tokai Asia Ltd. in Hong Kong. He previously spent nine years with Bankers Trust in New York, London and Tokyo, where he was Managing Director and Head of Derivatives Trading for Asia and a Partner of Bankers Trust. Mr. Dowd began his career with Samuel Montagu Capital Markets Inc., a boutique investment bank.

Mr. Dowd earned a Bachelor’s of Science in Foreign Service, majoring in international economics, finance and commerce. He holds the Chartered Financial Analyst designation and is a CPA. On the boards of several privately held companies, he also is a founding trustee of the Young Women’s Choral Projects of San Francisco.”

My Predictions About the Fate of Bitcoin Over the Next 5 Years

I was a Bitcoin bear. I wrote the following words to a business partner in February 2014: North Capital “does not want to get involved with Bitcoin at this time, and probably never, unless there is way to track the origin of money flows and authenticate original sources of funds.” What a dope! Had I taken the time to dive deep into the technology underpinning Bitcoin, my personal aha moment would have come almost three years earlier than it eventually did, and I might have directed our team to try to solve this “source of funds” problem and go after the opportunity offered by crypto digital assets. Bitcoin has grown up since then. Its value has increased by 20x, and it is now more easily traded than most fiat currencies. Many early Bitcoin adopters have moved on to other blockchain systems that are proving superior to Bitcoin for certain applications. For example, my business is focused on the transaction, clearing and custody of securities, an activity for which the Ethereum blockchain is ideally suited. I believe the use of Ethereum will explode, but success will not come at the expense of Bitcoin. With a market capitalization of $200 billion, crypto investors today use Bitcoin as a store of value, like gold or silver. Bitcoin has value because it has a finite supply and is useful. Could the price collapse? It certainly could. If investors lose confidence in the cryptocurrency, or if a better technology comes along, demand would decline and the price would fall. But Bitcoin has been very resilient, enduring major fraud and theft among some market participants, without undermining investor confidence. I therefore believe that Bitcoin will continue to appreciate, albeit at a more modest pace, and with continued extreme volatility along the way.

Scott Amyx, Managing Partner at Amyx Ventures

My Wall Street Background

Scott Amyx is the author of Strive: How Doing the Things Most Uncomfortable Leads to Success, which has been endorsed by Forbes, Singularity University, Tribeca Film Festival and other influencers. He is a global thought leader and venture capitalist who has appeared on TV, TIME, Forbes, NYT, TechCrunch, CIO, Washington Post, Wired, Forrester, G20 report and other major media. https://scottamyx.com/

My Predictions About the Fate of Bitcoin Over the Next 5 Years

“There was a great NYT article about the Winklevoss Twins’ who bet their investment fund on bitcoins. Their 25,000+ percent return is incredible but so is there recent meteoric fall realizing a paper loss of $443 million. Too say that bitcoins are speculative and volatile is an understatement. At least for the Winklevoss, the cost basis was $10/ coin back in 2012. But for any non-accredited investors to plunge into bitcoins now at today’s inflated prices would be not only unwise but outright foolish.

Does that mean we should never invest in bitcoins? No. (Over the long run, bitcoin is here to stay.) The point is that investors need to start from the perspective of holistic asset allocation and appropriateness to their risk profile. Until there is substantial market correction, it’s a bubble waiting to burst and with it many people will lose a big portion of their savings.

One of the best advice I ever received was, “”if you hear your family members, taxi drivers or neighbors talk about an investment, you know that it’s time to get out!”” “

Stephen Powaga, Head of Research, Blockchain Momentum LP

My Wall Street Background

Stephen Powaga is the Head of Research at Blockchain Momentum LP. He has spent his career developing corporate and investment strategy for companies ranging from Fortune 500 members to early stage firms. He specializes in strategy development, market anomaly analysis, quantitative research, fundraising initiatives, R&D funding decisions and private market transaction negotiations.

My Predictions About the Fate of Bitcoin Over the Next 5 Years

“Bitcoin has proven itself to be extremely anti-fragile in the face of significant headwinds over the years. It’s initial development phases were marred by the Mt. Gox implosion and a reputation for only being used to buy online drugs. Additionally, 2013/2014 actually saw a larger bubble (as measured by Metcalfe-to-Price and NVT ratios) develop than what we are currently experiencing. Many thought the popping of that bubble signaled the death knell for the new technology. The resurgence of Bitcoin in 2017 re-ignited the public’s interest and has gone on the further prove out the anti-fragility of the technology.

Over the coming years there will be additional hurdles to overcome, but Bitcoin, as a distributed network, is well positioned to weather the coming challenges. These challenges included additional boom/bust cycles and increased scrutiny from financial regulators. However, increased regulation will actually serve to further cement Bitcoin as an important global asset. The safeguards regulation provides will encourage organizations who have previously shied away from the sector to invest. Indeed, Aleksander Berentsen and Fabian Schär in the Federal Reserve Bank of St. Louis Review recently wrote “We conclude that Bitcoin has a wide range of interesting applications and that cryptoassets are well suited to become an important asset class.”

Craig Birk, EVP of Portfolio Management at Personal Capital

My Wall Street Background

Craig Birk is EVP of Portfolio Management at Personal Capital, where he helps ensure financial dashboard users and investment clients have valuable information and insight and the best solutions possible. Prior to his time at Personal Capital, Craig was responsible for portfolio implementation, risk management and capital markets and securities research at Fisher Investments, helping it grow to over $40 billion in assets.

My Predictions About the Fate of Bitcoin Over the Next 5 Years

“To qualify as an investment, an asset has to have a positive expected return over time. That’s debatable with Bitcoin. Right now, Bitcoin is more speculative than anything. It is possible that the wild price swings will moderate over time and cryptocurrencies will build enough of a track record where they become something like gold, with expected return around the rate of inflation, but still with meaningful volatility. Ironically, while there is fear of government regulation among crypto-enthusiasts, it may help legitimize them in this regard.

Bitcoin is not backed by any cash flows or real assets, so investors buying Bitcoin need to accept the possibility of losing almost all of their money. It has reached a size where it probably won’t ever go away entirely, but there isn’t much difference between zero and close to zero. Then again, it could also keep rising — it’s pure speculation. Most things that shoot up in price enough to capture mainstream attention and cause the stirrings of envy usually come back down to earth — often painfully so.

While some people have made a lot of money on Bitcoin so far, the wealth created this year in Bitcoin is less than 3% of that added in the global stock market. In investing, it’s critical to learn from the past, but remember that what matters is the future. Each individual must decide if Bitcoin should be part of their portfolio in 2018. Regret about missing out on Bitcoin or other things that happened in 2017 shouldn’t be part of that equation.

Blockchain is an exciting technology with many possible real-world applications. For now, Bitcoin itself is primarily something to wager on. It is very hard to use as a currency, and it’s too volatile to be a good store of value. It has been a boon to kidnappers, extortionists and anyone else who wants to transfer wealth anonymously.”

Michael Katchen, Wealthsimple CEO

My Wall Street Background

Wealthsimple Founder/CEO Michael Katchen is 30 years old, and this is his second start-up with his cofounders. He worked at McKinsey in Toronto before joining his Wealthsimple cofounders in San Francisco at their Y Combinator start-up, 1000Memories, which they then sold to Ancestry.com.

My Predictions About the Fate of Bitcoin Over the Next 5 Years

“The Volatility of Bitcoin Should Be Teaching Millennials That The Only Thing You Can Control Is Risk: Ultimately, you can’t predict what’s going to happen and shouldn’t try. Millennials like the blockchain/digital halo, but they also need to factor in A) bubbles, and if they’re doing well, B) portfolio rebalancing.

If one is looking at bitcoin as a longer-term market, all the more reason to do some portfolio rebalancing soon.

Recency bias: A challenge with big runs like this is people get a recency bias. If an asset has done well over that past few years, investors project that performance into the future, but it’s not necessarily the case.”

Andrew Almeida, CFA, CFP, Founder and CEO of Almeida Investment Management

My Wall Street Background

“Andrew Almeida is the Founder and CEO of Almeida Investment Management (AIM), a private Registered Investment Advisory firm located in Islandia, NY that specializes in corporate 401k plans and wealth management for high net worth individuals. His firm maintains a commitment to being a fee-only investment manager and acts in a fiduciary capacity. He holds both the Chartered Financial Analyst designation and is also a Certified Financial Planner. Prior to AIM, Andrew worked at City National Bank where he contributed his expertise in portfolio management, asset allocation, and security analysis as a part of a team managing $1.25Billion in client assets. “

My Predictions About the Fate of Bitcoin Over the Next 5 Years

“Bitcoin will be worthless by the year 2023. At best, it will be trading between 0 and 100 among enthusiasts who refuse to let go of the idea that Bitcoin is a revolutionary idea or currency. There is no doubt that blockchain is a revolutionary idea. Bitcoin though, in and of itself, represents nothing. Even calling it a currency is a misnomer. That is because it is not the official legal tender of any country. It is backed by the full faith and credit of nothing. It does not have wide acceptance in commerce and people don’t get paid in Bitcoin.

Since it’s not a currency and isn’t gaining any regulatory support in major markets, it would at least need some “usecases”. However, other blockchains have been proven to be more effective and process transactions faster. Just look at Ripple, which is being adopted by banks and recently partnered with MoneyGram. Bitcoin doesn’t have any use cases like that.

So, we know Bitcoin is not a stock, bond, commodity, or even a currency. At best we can classify it as a new asset type — a Digital Asset, with no usecase so far. Consider the following though which makes looking at Bitcoin as an investment even more frightening. If we were to look at Bitcoin like we do a corporation, it would be a company for which we do not know who its founder is, don’t know how much coins (shares) are held by its founder (insiders), and don’t know the free-float amount available to trade. One analyst has concluded Satoshi Nakamoto, the founder who hides behind the pseudonym, holds 1 million coins, but there is no way to be certain.

If I were buying Bitcoin, I wouldn’t put down any more money than I would at the roulette table.

Michael Tanney, Managing Partner & Co-Founder, Wanderlust Wealth Management

Eric Vitale

My Wall Street Background

“Michael Tanney is the Managing Partner and Co-Founder of New York City-based Wanderlust Wealth. With experience managing more than $8B in complex global client portfolios, he provides personalized, high-quality investment advice with a focus on the growth and preservation of investable wealth, through sound asset allocation and risk management.

Wanderlust Wealth is an independent, registered investment advisory firm that manages clients’ money as if it were their own. The firm, led by Michael, is present, mindful, and always does what is in the client’s best interest. Wanderlust is product-agnostic, avoids illiquid investments, and only operates in a fiduciary capacity to deliver goal-based financial counsel and comprehensive wealth management solutions.

Wanderlust’s commitment to each client is based on three principles: intellectual capital, structured process, and client accessibility.

As a specialty retirement income planning firm, Wanderlust works to make sure its clients always have enough income to maintain their dignity and independence in retirement.

Wanderlust Wealth specializes in wealth creation: the team works to make sure clients compound their wealth, allowing them to live the enhanced lifestyle they want and creating a legacy for their family.”

My Predictions About the Fate of Bitcoin Over the Next 5 Years

“Bitcoin will not crash toward zero and disappear, nor will it grow limitless to the sky. Bitcoin will remain relevant.

The price of Bitcoin theoretically should be tied to the economic principles of supply and demand. For example, although the supply of Bitcoins is slowly rising, it may reach an upper limit, which might imply limited future supply. However, new cryptocurrencies are developed almost daily, and with future innovations in technology making cryptocurrencies close substitutes to one another, the quantity of future supply might be unlimited.

Similar to traditional currencies, there is no reliable way to predict how much and when appreciation in Bitcoin will occur. Unlike stocks or corporate bonds, it is not clear that Bitcoin offers investors future positive returns. Unlike government bonds, Bitcoin doesn’t provide any level of clarity about future wealth. Unlike holding cash in fiat currencies, Bitcoin doesn’t offer the means to plan for a wide range of near-term known expenditures.

When evaluating an investment, a portfolio manager must consider what percentage of all eligible investments the value of the proposed investment represents. In the example of Bitcoin, when compared to global stocks, bonds, and traditional currency, its market value is minuscule. Therefore, we encourage our clients who wish to own Bitcoin as an investment, that its weight in a well-diversified portfolio should be minuscule as well.

None of the above is meant to dilute the excitement around the underlying blockchain technology that enables the trading of Bitcoin. As an open, distributed ledger that can record transactions efficiently, verifiably and permanently, blockchain technology will have significant implications for industries across the globe. We remain bullish on Bitcoin vicariously through companies that provide the infrastructure enabling cryptocurrencies as an asset class to grow in accessibility, popularity, and functionality.

Nolan Watson, President & CEO, Sandstorm Gold Ltd.

My Wall Street Background

“Nolan’s financial savviness and business smarts launched his career early on. At the age of 26, Nolan was the youngest CFO of a NYSE-listed company called Wheaton Precious Metals (formerly Silver Wheaton). He raised over $1 billion in debt and equity to fund Wheaton Precious’s growth to multi-billion dollar market cap in less than 5 years. He left to start Sandstorm Gold when he saw a niche in the market to finance junior companies in the gold sector.

He has been interviewed on CNBC, Fox Business, and Bloomberg Radio among others. Nolan has been recognized by the World Economic Forum as a “Young Global Leader”, Canada’s Top 40 Under 40 award, and as Entrepreneur of the Year for Investment Services by Ernst & Young. He is a Fellow of the Chartered Professional Accountants of British Columbia (Valedictorian), holds the designation of Chartered Financial Analyst and received a Bachelor of Commerce degree, with honours, from the University of British Columbia.”

My Predictions About the Fate of Bitcoin Over the Next 5 Years

“Although I believe that blockchain technology is going to holistically transform the financial backbone around the world, I also believe that completely unbacked cryptocurrencies are the biggest bubble that I have ever seen in my life. It reminds me of the time in 1999 when people paid obscene values for dot com companies because they believed the internet was going to change the world. They were right, the internet changed the world but those dot com companies were mostly worthless and everybody lost money. It’s the same thing with blockchain and coins; blockchain is going to change the world but the coins are all worthless.

The good thing is that it’s causing a whole generation of young people to think about money. What is money and why does it have value? Why we shouldn’t trust government fiat currencies? When cryptocurrencies blow up, we’ll have thought about money more seriously and I think people will be looking more closely at gold. Gold has stood the test of time for thousands of years and I think gold is going to have a bull market by the time cryptocurrencies are crashing.

Karl Kaufman, Founder & CEO of American Dream Investing

My Wall Street Background

I’m a Forbes contributor and have written about Bitcoin and other cryptocurrency for Forbes . I’m also the founder & CEO of American Dream Investing a financial membership service sharing independent and unconventional thoughts on building wealth through the stock market. My father & I manage his private multimillion dollar portfolio and send text alerts to members whenever we make a trade. Our motto is “No One Loves Your Money More Than You.” I graduated from Cornell University, worked as a market data analyst, and passed the Series 65 Exam. I’ve been invited to present to students at Boston College & the University of Central Florida about the importance of investing at an early age.

My Predictions About the Fate of Bitcoin Over the Next 5 Years

“The “”get rich quick”” crowd has pumped up the price of Bitcoin over the past year. Too many buyers are uninformed and are merely speculating, looking for easy money. There could be a huge drop (even larger than the nearly 50% drop since before Christmas), resulting in a panic and a mass exodus.

I ultimately believe that the long-term future is bright for Bitcoin and especially the blockchain technology, but it will be a hell of a bumpy ride along the way. The insane volatility will probably continue unabated, but the long processing time for transactions and the high fees should go down as the technology improves. Those people who are willing to hold (or HODL) for the long-term may ultimately be rewarded once the media attention fades and the unsophisticated speculators sell out and move on to other shiny objects.”

Cody Sperber, Founder of Clever Investor

My Wall Street Background

Founder of Clever Investor, Cody Sperber is an avid real estate and cryptocurrency Investor. Sperber’s focus is buying, holding and flipping the top 250 cryptocurrencies. Clever Investor is a Top Rated Educational Company awarded by Inc. 5000 in 2015 and 2016. Clever Investor provides education and support to all levels of investors. He is the creator of Crypto Coin Profits, a self-paced educational course as well as the founder of a the Cryptocurrency Alliance, the largest self-regulated Private Group in the space.

My Predictions About the Fate of Bitcoin Over the Next 5 Years

“While it is still too early to predict exactly how Cryptocurrencies will pan out, it is very clear that the market is changing and there are major opportunity for clever investors. During this transition, many fortunes will be won and lost, it will depend on the HOW people invest and WHEN.

I predict Bitcoin (or possibly cryptocurrencies) will skyrocket in value over next 5 years due to more market adoption and as the options market opens up. Currently, new Cryptos are coming on the market each month. Many are growing faster than Bitcoin. Unless US government creates their own cryptocurrency, I don’t think it will become a true usable currency that replaces the dollar. I see cryptocurrency more as a great way to store value, like gold or collectible artwork.

Many regulations will inevitably change the landscape so it’s hard to predict more than a few months out. Wall Street and wealthy elite are legally manipulating the market through the future market. That’s the main reason we are currently seeing huge price swings. It’s been researched that about 1000 individuals own 40% or more of all Bitcoin… these “whales” can easily move the price because the market is still so small and there is no regulation. Since it’s decentralized and worldwide I don’t think enough countries can agree on regulations so I don’t think regulations will stop growth… just slow it down.

I am very bullish on Cryptocurrencies. Crypto will be the largest transfer of wealth this world has ever seen.

If it does crash I don’t think it will affect overall economy (like housing crash) because most people are speculating with very little money. Most individuals have very little cryptocurrencies in their portfolio. Plus, the opportunity and risk is spread worldwide.”

Eduardo Lopez, CEO, Blockfund

My Wall Street Background

“Eduardo Lopez is CEO of Blockfund, an analytics firm that analyzes crypto assets and consults on Initial Coin Offerings (ICOs) for various venture capital firms. Eduardo has been investing in cryptocurrency since 2013, and authors Blockfund’s daily “”Crypto Talk”” series, an espresso shot of news, insights and thoughts on the cryptocurrency and blockchain space.

50% marketer and 50% data scientist, Eduardo has built a reputation for turning raw data into actionable programs that drive results. For nearly a decade, he’s helped tech giants like SAP, HP, and Sage Software understand, unlock and unleash the power of emerging technologies and digital media.

Eduardo is also an official member of the Forbes Nonprofit Council and enjoys writing about the blockchain, startups, technology, education, and professional development in his spare time.”

My Predictions About the Fate of Bitcoin Over the Next 5 Years

“The world of finance is changing. While cash and venture continues to be the bedrock of consumer transaction and startup funding, digital currencies and token sales will more than triple in market capital over the next five years, vaulting from half a trillion in 2017 to five trillion by 2023.

This is according to Blockfund data, per our recent cryptocurrency forecasts, which indicates Initial Coin Offerings (ICOs) are taking over the blockchain and fintech communities, providing a positive backdrop for digital currency growth. Billions have already been used to buy crypto assets in the form of ICOs and now the total market cap for cryptocurrency has reached as high as $700 billion. Some of the biggest ICOs have raised more than $230 million with little more than a team and an idea.

Here are some expectations for the next five years:

1. More than 5,000 cryptocurrencies and tokens will be available across more than 30,000 markets worldwide. Major areas to watch will include: healthcare payments and providers, B2B payments, residential and commercial real estate, driverless cars, alternative energy, supply chain and logistics, and travel and leisure.

2. Cross-border payments will cost nearly the same value as intracountry payments, with nearly 50% of transactions exceeding $1000. Consumer payments will increase tenfold and have a $200-$400 average transaction size.

3. More than 75% of all exchanges will directly process national currencies, up from 21% in 2017. Bitcoin will lose dominance as a preferred payment rail for cross-border transactions as other blockchains become more mainstream. Ripple’s liquidity solution will take control over 10% of its market.

Shidan Gouran, President of Global Blockchain Technologies

My Wall Street Background

Shidan Gouran is a serial entrepreneur who founded Nuovotel, one of the first and largest wholesale VoIP service providers of its time, Jazinga, developers of an award winning unified communications system and Home Jinni, developers of the first Android based Smart TV platform. Shidan is an investor in and advisor to a number of financial technology and blockchain startups. He mined his first Bitcoin in early 2010 and has been involved with Cryptocurrencies ever since. Shidan studied Pure Mathematics and Theoretical Physics at the University of Western Ontario.

My Predictions About the Fate of Bitcoin Over the Next 5 Years

“A lot can happen in five years — especially when it comes to cryptocurrencies. To put that into perspective, let’s look at where Bitcoin was five years ago from today. At the end of January 2013, Bitcoin was trading for $20.47. Since then, Bitcoin has grown nearly thousandfold, thanks to greater public and institutional interest, and stronger regulatory acceptance. Bitcoin has run into some competition from new cryptocurrencies on the market. Also, the community has expressed some concerns with regard to the viability of mining Bitcoin, with increased computing resource requirements, as algorithm difficulty increases. Despite this, we see a positive outlook for Bitcoin in the next five years, as we have confidence in Bitcoin’s advantages, and we have a solution to make mining Bitcoin practical and sustainable in the long term.

The biggest advantage that Bitcoin has is its brand. Most people immediately associate “cryptocurrency” with “Bitcoin”, and it’s become somewhat of a household name. Additionally, Bitcoin already has an established network of merchants and ATMs that can process transactions using the cryptocurrency. With usability being a key concern for the viability of any given cryptocurrency, having this infrastructure in place gives Bitcoin a major step up over its competitors.

Addressing the concerns about mining, Global Blockchain has established a mining division where we will be optimizing the use of computing resources for mining cryptocurrencies, including Bitcoin. To this end, we are exploring development of an SoC (system-on-a-chip) solution, where we will be able to harness the computing power of such devices as home appliances, HVAC units, and gaming consoles — all to perform the computing tasks that mining requires. This solution alone will vastly improve the long-term prospects of Bitcoin. Combined with its existing advantages and other developments that are taking place, we can say with no hesitation that Bitcoin’s growth in the next five years will be positive and sustainable, keeping it the undisputed leader of the cryptocurrency market. “

Kunal Desai, CEO & Lead Instructor of Bulls on Crypto Street

My Wall Street Background

Kunal Desai is an American day trader and known for becoming a wealthy retail trader and growing his multi-million dollar trading education business. He is also a successful cryptocurrency trader and investor where he has capitalized on the new trend of digital currency. He teaches his crypto trading methods at BullsonCryptoStreet.com.

My Predictions About the Fate of Bitcoin Over the Next 5 Years

The introduction of Bitcoin and other cryptocurrencies has fundamentally changed the way assets are exchanged. Cryptocurrencies over the next five years will become a more commonly accepted form of currency in businesses across the world. My prediction is they coexist with fiat currency. At the moment, there are hundreds of cryptocurrencies that have popped up from ICO’s that are pretty much worthless. Much like the Dotcom bubble, many of these coins will go to zero. The ones that actually have a purpose will stick around and help change the way assets are exchanged. There still is a major question mark over Bitcoin’s ability to remain the most commonly accepted cryptocurrency for transactional use. Bitcoin requires an unsustainable amount of energy to mine, and has very high transaction costs. Other cryptocurrencies like Zcash and Litecoin have faster transaction times and lower transaction fees. They pose a threat to the longevity of Bitcoin. I like to think of Bitcoin like Gold. There is a small supply (21 million but probably actually around 10 million due to all the hacks and lost coins) and it was first to market making it the leading name in cryptocurrencies. If Bitcoin can solve its energy and high transaction cost issues it can certainly rise to six figures and even a one million dollars in value. The low supply is the main catalyst behind its rise and potential rise to much larger values. Personally, I think Bitcoin sticks around and becomes the Gold of the digital currency era.

Jason Remillard, President, Data443

My Wall Street Background

Personal investor, Product Developer and Integrator — Miner

My Predictions About the Fate of Bitcoin Over the Next 5 Years

The bigger story is Blockchain from my perspective. We are actively investing in many areas that the blockchain enables — I expect it to be the underpinning of significant product and integration components — many of which are undefined today!