Bitcoin rises above $9,000, but can the market endure, or is it just a fad?

By Eric Brackett Published October 28, 2020

bitcoin stock — Vyacheslav Prokofyev/TASS/Getty Images

Bitcoin and other cryptocurrencies had a rough start in 2017, as values plummeted. Things may be looking up for the cryptocurrency industry, however, as Bitcoin has once again increased in value to more than $9,000. While that is still much lower than the lofty heights of last year’s Bitcoin boom, the fact that currency seems to be regaining some of its value will likely be seen as welcome news by those who invested in the coins.

In fact, some analysts believe that rather than being a passing fad, cryptocurrencies are just getting started. Ran Neu-Ner, who hosts CNBC Africa’s Crypto Trader, told CNBC on Friday that he believes that “we haven’t even got to the start line of cryptocurrencies.”

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Neu-Ner, whose own portfolio includes more than 40 different types of cryptocurrency, says that the technology isn’t truly ready for the mainstream just yet. He argued that the unscalable markets and difficulty in opening new crypto accounts can make it difficult for the general public to invest in cryptocurrencies.

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He also added that he felt that many companies got in over their heads by investing in new cryptocurrencies without really understanding the underlying technology behind Bitcoin and others.

“Yes, there is a new digital gold, a new digital store of value,” Neu-Ner said. “I think bitcoin is the store of value. But the game hasn’t even started yet.”

Neu-Ner says that he believes we will soon see a mainstream adoption of cryptocurrencies which will lead to a universal store of value. He admits that the market is rather volatile right now, but expects things to start trending upward later this year.

“I’m expecting the market to hover here for a little bit, a little bit nervous,” he told CNBC. “And then I’m expecting some kind of something to bring up a green candle, and that will start the momentum back up again.”

Despite Neu-Ner’s confidence in Bitcoin, no one can deny that general instability of cryptocurrencies make a lot of people nervous. Over the course of the past week, Bitcoin lost $125 billion in value thanks to a panic set off by fears surrounding stricter regulations on cryptocurrencies. For now, the future of Bitcoin and similar currencies remains up in the air.

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