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'By 2020 the price of bitcoin will be nearing €10,000'

Bitcoin values have surged to new highs, passing $2,967 per coin yesterday. Its value has ri...
Newstalk
Newstalk

12.44 7 Jun 2017


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'By 2020 the price of...

'By 2020 the price of bitcoin will be nearing €10,000'

Newstalk
Newstalk

12.44 7 Jun 2017


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Bitcoin values have surged to new highs, passing $2,967 per coin yesterday. Its value has risen by more than 200% in 2017.

Lori Keogh, Director Financial Services Strategy with Deloitte Ireland joined Vincent Wall on Breakfast Business to discuss the electronic currency's future prospects.

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He outlined two reasons behind the spike in Bitcoin's value:

"Number one is that people are fleeing to bitcoin, instead of fleeing to gold in periods of volatility," Mr Keogh told Newstalk. He added that it has become a haven asset when markets become hard to predict.

The second factor which the analyst identified was the "hype around blockchain technology."

"We are seeing a lot of financial services institutions and many other sectors look at blockchain technology as a means to disintermediate - and also to move to a peer-to-peer base," he told Vincent Wall.

Bitcoin's transfer mechanism is based on a centralised ledger (its blockchain) - this new technology offers security benefits and savings when transferring money.

Mr Keogh expects the value of the currency to continue to rise as it is recognised by a greater number of central banks around the world.

"I see the price continuing to increase. I think by 2020 alone the price of Bitcoin will be nearing €10,000. That's what a lot of analysts are saying," he stated.

Cautioning that all investment decisions need to be thought about carefully and that diversifying your investment portfolio is key - he added that he believes that bitcoin should be considered as an investment option:

"Do I think Bitcoin and other cryptocurrencies are worth a flutter? Absolutely. You can buy in for as little as €20.00 at an individual level," he concluded.


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