Bitcoin price could go “off the dial” if a disaster event like a US-Iran war arises, an expert said.
The digital currency has gained ground over the previous week, rising to $8,100 from $4,000 on Tuesday (May 14). It rose to $8,000 from $6,000 in five days.
Contributing factors to Bitcoin price surge
ADVFN and Online Blockchain plc. CEO Clem Chambers attributed the Bitcoin price surge to various factors, including the rising tension between the US and Iran.
“If you are an Iranian and you want to protect some of your wealth, or you might have to leave Iran and you are worried. In the old days, you would buy gold – bitcoin is the new gold.” He added: “The baseline of why this has happened is that the crypto winter is over. And when you reach the bottom of the market, it does bounce pretty quickly – so that is a technical reason.
The expert also explained that the headline reason for the surge is a trade war between the US and China. He expects China to devalue as a result. As such, he said that investors will most likely put their money into bitcoin as holding. This is said to make Chinese Yuan in a current state of “worry”.
Digital currency exchange Coinbase is now offering Visa debit cards which is another contributor. The plastics enable individuals to buy good using their cryptocurrency.
Bitcoin price all set to hit a new high
Moving forward, the expert expects to see bitcoin hitting new highs.
“You are seeing it is back. It got absolutely smashed and now it is back. It is not going to go away. It is designed indestructible and it is proving to be so,” he said.
Mr. Chamber expects the bitcoin to surpass its December 2017 high at over $20,000 as “it is going to increasingly be useful.”
He added that a “horrible disaster” like a war between the U.S. and Iran could push people to invest in the cryptocurrency and thereby causing Bitcoin Price to hit $100,000 a coin.
“If there was a war of any shape or form, the value of crypto will just go through the roof. I mean, America gets in a war with Iran, bitcoin will be $100,000 a coin,” he said.
Sources: Business Telegraph, Express.co.uk