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Crypto FOMO Heats Up As Bitcoin Climbs Above $11,000

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When ‘experts’ of all sorts dare to predict an exceptionally bright future for Bitcoin, they often end up comparing it to Warren Buffett’s admittance that he was wrong on Google and Amazon stock in the early days. 

That was a lot of FOMO: After all, Amazon shares have soared from $10 in 2002 to $3,117 today. 

“I was too dumb to realize. I did not think Bezos could succeed on the scale he has,” Buffett said three years ago. Since then, his holding company Berkshire Hathaway bought nearly $1 billion in Amazon shares.

Now, the Winklevoss twins--eternal promoters of Bitcoin, at it again--and right now they can perhaps be forgiven because Bitcoin is soaring past $11,300 and has held there for days. 

It’s enough to have prompted Cameron Winklevoss, one of the founders of the Gemini cryptocurrency exchange, to warn that anyone not willing to buy Bitcoin today is going to be making an even bigger mistake than those who missed out on Amazon, Apple, Microsoft or Google stocks 20 years ago. 

In 2010, the valuation of a bitcoin was around  $0.08 for a single coin. With several major rallies and crashes since, and a record of $20,000, today’s value of over $11,300 is enough to once again exonerate Winklevoss.

There are quite a few different predictions and expectations on the future of bitcoin and other cryptocurrencies for the next few decades.  Some predict that cryptocurrency will replace cash, while some say it will collapse completely. 

This is, after all, crypto: It has no historical comparisons so prediction is a game of pure speculation on sentiment. 

Bitcoin could reach $400,000 by 2030 and be worth a whopping $8 trillion, by some predictions. But then again, it could also be at zero.

Germany’s largest lender, Deutsche Bank, suggests that cryptocurrencies could replace cash payments within the next decade, questioning the survival ability of our fiat currency-based monetary system.

In the report titled “Imagine 2030”, Deutsche Bank’s researchers are skeptical about the survival of the current fiat currency-based monetary system.

“The current fiat system looks fragile, particularly because of decades of low labor costs and inflation. Over the next decade, things could change and demand alternative currencies, from gold to crypto, could take off,” DB wrote.

On the other end of the spectrum ...

Last month, investor Jim Rogers said that cryptocurrencies will start to decline and eventually go down to zero because governments will not allow it to survive…by the governments.

"Those who use cryptocurrency think they are smarter than their governments. In fact, I think they are correct. But their governments have something that crypto people don't have. That is guns. The reason why I think cryptocurrency will be gone eventually is that it is not based on the armed force of governments' power," Rogers said.

At the World Economic Forum in Davos, Switzerland last year, the top investor in the crypto space, Jeff Schumacher of BCG Digital Ventures, said that he saw bitcoin as a speculative asset having no underlying value and that it might even go down to a zero. 

“I do believe it will go to zero. I think it’s a great technology, but I don’t believe it’s a currency. It’s not based on anything,” Schumacher said

What many agree upon is that the past decade of upside for bitcoin was brought about largely thanks to FOMO. And that same FOMO will play a major role in the coming years. In other words, there’s nothing at all fundamental about all of these predictions. A global pandemic certainly helps, though, with the positive predictions. 

By Michael Kern for Safehavem.com

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