With Bitcoin currently trading near record highs, many outsiders think they are already late to the party and will not invest in the cryptocurrency.
Similar sentiments were shared by a group of UK savers surveyed by Parliament Street Think Tank, with thirty per cent of respondents admitting they will not invest in cryptocurrency because they feel they have ‘missed the boat.’
Despite outsiders not being willing to jump in, a healthy number of respondents (31%), including those holding bitcoin, believe that Bitcoin will hit a £50,000 price before the year runs out.
There is also a more bullish lot of respondents (18%) who think that Bitcoin will touch the £100,000 mark in 2021.
Remarking on what would have been if they moved portfolio into Bitcoin at the start of last year, one quarter (25%) of respondents reckoned they would have made over £1 million profit on their investment.
Another 37% of the surveyed investors believed that the current macroeconomic landscape makes stocks and other traditional assets a more risker option. They believe that the ‘risky’ nature of the stock market played into the hands of cryptocurrencies generally considered ‘disassociated with fiat systems of currency.’
Is Bitcoin Heading to £50,000?
At the time of writing, Bitcoin is trading above £40,000 and looks primed to go even higher. Even many bitcoin believers could not predict the over 600% increase recorded by Bitcoin in the past twelve months.
However, there are plenty of reasons behind the surge; little wonder even new investors who would have thought they missed the boat are already sitting in profit.
Aside from the rise in digital money use because of the COVID-19 pandemic, many large corporations and financial institutions have thrown their weight behind Bitcoin as a sort of hedge against inflation.
Companies like Tesla, MicroStrategy, and Square have diverted a portion of their cash reserves into Bitcoin. At the same time, traditional firms like PayPal, JP Morgan Chase, BNY Mellon, and Goldman Sachs launched bitcoin-related services in the past month.
Although these recent developments suggest a short-term £50,000 bitcoin price is on the card, only time will tell whether it comes through and if not, buying now would eventually mean ‘missing the boat.’