The price of bitcoin has shot up from $1,000 to $20,000 in 11 months while other popular cryptocurrencies like Ethereum, Ripple and Dash have increased in value even faster.
Virtual currency is quite volatile these days, and here’s LeapRate’s recent conversation with Edwin Dearborn, CMO at e-Chat, who gives his expert commentary on virtual currency volatility and shares opinion on Bitcoin’s 2018 movement.
LR: Why is the virtual currency so volatile these last days of 2017?
Edwin: Overall, there has been more excitement about the global economy. But with excitement comes unrest. We have seen struggling nations gravitate towards cryptocurrencies because it offers more opportunity where traditional finance did not. Moreover, the central banks and Wall Street recognize the power of blockchain technology and want a piece of the action.
LR: Can Bitcoin be called a bubble?
Edwin: In any market place we will see upsurges in crashes. Stocks, bonds, real estate, and other financial investments all have their ebbs and flows. Bitcoin will be no different. It is not immune to the realities of human emotion and sentiment about any product or service.
LR: Is Bitcoin another “tulip”-mania in the digital world, or will it deliver on its promise to displace central banks and hard cash as the primary means of exchange in the future?
Edwin: I do not see this as a fair analogy. Too often, this becomes a simple comparison to drive fear. Technology moves forward. I remember in the late 1990’s being told that the internet was dangerous. Now it consumes our lives. While blockchain may undergo various iterations and uses in everyday life, its expansion is undeniable. Cryptocurrency is here to stay in some for manner or another.
LR: Would you recommend Bitcoin as a part of an investment strategy and why?
Edwin: I believe that it should represent a small portion of one’s portfolio. But there are those who are more speculative that will go all in. To invest 5-10% of your portfolio would allow one to win big, potentially, while not risking your overall position.
LR: Can you predict Bitcoin’s movement in 2018? Will it fall to near-zero, continue to rise like diamonds have over the past century, or hold steady once the market finds the level it can tolerate?
Edwin: Sentiment drives value more than most suspect. If excitement continues, which I believe it will throughout 2018, we will see more and more activity with Bitcoin and other players. Moreover, Bitcoin has attracted so much attention from governments and central banks, that we have now passed the point of no return. Once regulations of a commodity begin at government and Wall Street levels, you have arrived as a high-level player.
Edwin Dearborn
Edwin Dearborn is the CMO at e-Chat and CEO at Premiere Lead Systems. He has taught sales and traditional marketing topics in the executive coaching field for more than 25 years. Dearborn is a well-known figure in the world digital marketing as hundreds of CEOs, CPAs, doctors, local small business owners and entrepreneurs from across the U.S. completed professional courses led by him.