2018 Will Be a Decisive Year for Bitcoin
December 29, 2017
There are a lot of hype and speculation around Bitcoin, but in 2018 the cryptocurrency could be able to cope with the price volatility and become a legitimate asset, especially if it has enough investments, says legendary investor Roger McNamee.
"[Bitcoin] still a very small market in the context of the larger financial world, but it has had a huge year," the investor said on CNBC.
He thinks that at the moment the Bitcoin market is accompanied by a 'speculative mania'.
"If a mania goes on long enough, it becomes self-fulfilling. Even after a crash, what follows is a legitimate industry."
Investor believes that to obtain a status of a legitimate asset Bitcoin needs to remain at its current level for a long time, forcing investors to continue investing in the cryptocurrency.
"With the amount of activity going on around it, there are people willing to invest the kind of dollars it takes to make a thing like bitcoin into a long-term part of the financial market," he said.
McNamee compared Bitcoin to the dotcom bubble, collapse of which sent America into recession, but then it become a major industry.
Investor noted that Bitcoin has to survive through 2018 to help investors to determine a role of the cryptocurrency in global economy. He said that the volatility level of Bitcoin in 2018 will make it clear:
"You'll have these big swings, up and presumably down, as well. And, you know, wherever that settles out I think will tell us a lot about the role of bitcoin long-term."
McNamee is not the only one who believes that the decisive moment has come for Bitcoin. Earlier this week the chief economic advisor of Allianz SE, Mohamed A. El-Erian
It also should be mentioned that McNamee is one of early investors in Facebook and Google.