A major investment bank has predicted Bitcoin’s crash and pinpointed it to next year after it soars to over $60,000. Russia and China work together to “engineer the crash,” of Bitcoin the bank has predicted.
According to Saxo Bank, Bitcoin will continue to rise during most of 2018 until it peaks at around $60,000. At that point, Moscow and Beijing will facilitate a crash of the cryptocurrency as they harshly crackdown on it. Saxo Bank predicts that more money will be gambled in digital currencies until more than £750billion ($1trillion) is invested worldwide.
The forecast assumes a Russian crackdown taking the form of the Kremlin mining of the cryptocurrency itself and “shifting the focus away from Bitcoin in an effort to keep more Russian capital onshore.” Meanwhile, in China, Saxo Bank predicts a state-sanctioned virtual currency will be launched which requires less computing power – and less power – to mine. Eventually, due to the “heavy hand of state intervention,” interest in cryptocurrencies decreases and “completely sidelines the Bitcoin and crypto phenomenon from a price speculation angle,” according to the bank’s prediction.
The prediction also finishes with Bitcoin’s end price at just $1000. Veteran investor Eric Schiffer has also shared his warning about the cryptocurrency. He thinks Bitcoin could become the biggest financial danger of the 21st century, branding it a “financial bubble bigger than the tulip craze.” He said: “I think bitcoin is a ‘tower of death’. It is going to result in the imminent death of your investment – a thermonuclear death.”
However, other experts, such as Jordan Hiscott, chief trader at Ayondo Markets, do not agree with Saxo Bank’s assessment and prediction. Hiscott does not see a crash on the horizon for Bitcoin. But he has also warned people to think twice before investing their hard-earned cash in cryptocurrencies. “For good investment options find trusted companies that would do that for you or look for a commodity with actual underlying value,” said Hiscott.