Bitcoin tipped to sink to US$5,000

Although cryptocurrencies have been around for many years, I think it is fair to say that 2017 was the year that they came to the fore.

Arguably the highlight was the incredible rise of the bitcoin price. The number one cryptocurrency finished the year with a staggering return of 1,300%.

To put that into context, if you had bought $10,000 worth of bitcoin at the start of the year, it would now be worth $130,000.

Will the rise continue in 2018?

While I am bullish on cryptocurrencies in the long-term, I’m not entirely convinced that bitcoin is the future. In fact, the technology is really quite cumbersome and has become antiquated already.

It takes 10 minutes to process a transaction with bitcoin, which simply is not acceptable in today’s day and age. Unless this changes in the near future, I think competing (and technologically superior) cryptocurrencies such as ripple and bitcoin cash could supersede it.

One leading finance figure believes that bitcoin could tumble as low as US$5,000 this year, compared to the US$13,759 it is fetching today.

In an interview with CNBC, Dennis Gartman joined others in comparing the bitcoin craze to the tulip mania that swept through the Netherlands 400 years ago.

He stated is belief that: “When bitcoin falls, and it shall, it’ll trade under US$5,000. Whether it does it next week, next year, six months from now, it’ll happen.”

But it is worth pointing out that not everyone is bearish on bitcoin. According to the Wall Street Journal, one unidentified trader has bet US$1 million that the bitcoin price will be higher than US$50,000 on December 28 of this year.

Time will tell whether it is Gartman or the trader which is right.

Bill Gates' Prediction Will Give You Goosebumps

Bill Gates is sounding the alarm on what could be a trillion-dollar technology

And when Bill Gates speaks, it pays to listen.

The huge trend is already starting to take off. Click here to learn more today.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!