Some reports suggest a positive year ahead for cryptocurrencies. Not this one, though…
There’s a dividing line, it seems, where projections for the near future of cryptocurrencies is concerned. Whereas many are speculating that prices will be rocketing over the next 12 months as interest continues to grow, those vested in more traditional forms of money are less sold.
Straddling the two is technology investment bank GP Bullhound, that has now issued a new report that in turn suggests a near-wipeout is on the cards.
It’s put together its report entitled ‘Token Frenzy: The Fuel of the Blockchain’ (as reported by CNBC), and in it, it argues that there’s going to be a price spike coming, as institutional investors get attracted to cryptocurrencies. Then, that’ll encourage retail investors, who will buy the currencies whilst the prices are high. Then, it reckons sharp falls will follow, a “heavy correction” that’ll lead to a “mass market wipe out”.
It’s one scenario the report explores, but as its lead author, Sebastian Markowsky, argues, “once this ‘crypto-winter passes, the growth dynamics for the precious few survivors will be unprecedented’.
It all reads a little worst case scenario though, and what’s more, a worst case crunched into a short timescale. It’s set to be an interesting year ahead…