In the week leading to Christmas, major cryptocurrencies experienced a massive price correction, which left more questions than answers. If the sudden drop had not happened, it would have been easier to believe another big price projection for Bitcoin—the currency had just hit an all-time high of nearly $20,000 by December 22.
Investors and analysts gave various factors that could have led to the sudden drop in price, witnessed by major cryptocurrencies. All the same, the markets have now stabilized and major cryptocurrencies such as Bitcoin and Ethereum have recovered from the shock. With that in mind, it is now fitting to revisit some of the projections set by crypto gurus such as Ronnie Moas, the brain behind some of the reliable, well-informed valuations of 2017.
In the Words of Ronnie Moas
Recently, Moas spoke to Cointelegraph in an exclusive interview and explained why he is optimistic that Bitcoin will be the world’s most valuable currency. The 50-year-old cryptocurrency market expert exuded confidence the digital asset will eventually outdo China and Gold as far as market capitalization goes.
“Bitcoin would have to jump 20 times from where it is now to hit that number one spot. That would put its valuation at around $6 trillion, which is near where Gold and China are right now.”
“Why do I think Bitcoin deserves the same valuation as gold? It’s very simple, I don’t know how much Gold there is in the ground, But I know how much Bitcoin there is, and I also know that if the current pace continues with one to two million people around the world opening up new crypto accounts. We will have a few hundred million people by this time two years from now trying to get their hands on a few million Bitcoin that are available.”
In addition, Moas pegs his idea on the actual supply of bitcoin to support his prediction idea. According to a recent study, it is estimated that almost 4 million bitcoins are lost forever, which accounts for more than 20 percent of all the bitcoins mined to date. This estimate does not include bullish investors who ‘hodl’ their bitcoins.
Many Bitcoins are lost
Moas says, “The number (of Bitcoin available) is a lot lower than what people think it is. A lot of the Bitcoin has been lost, some of it hasn’t been mined and then you have a lot of people like myself that just won’t sell their Bitcoin at any price.”
With that in mind, where does Moas land in terms of 2018 price projections? In order to understand where he’s headed, it is advisable to understand where he started first:
“My feeling all along is that Bitcoin is going to hit the top of the mountain. As far as my price targets go, I started out with a $50,000 target back in July—we were at $2570 at the time. Had I told people where I really thought it was going at the time, they would have thought I was on drugs. You can’t put out $200-300,000 target on something when it’s trading at $2570, people just won’t take you seriously.”
“So what I did was put my target out, and every few weeks as news comes out, and the obstacles and dominoes in Bitcoin’s path get knocked down, I adjust my price target.”
Against that backdrop, Moas has already decided on the projection:
“My target for 2018 is $28,000 and may get upgraded again in the next few months,” he says.
Futures and Crypto Market
Even so, based on the current value of Bitcoin, it would require a lot of groundwork to enable it to meet the target set by Moas in the next 12 months. The best stock picker heralds a favorable reaction to the launch of Bitcoin futures contracts, consequences, and future prospects of mass adoption by the Wall Street.
Moas says, “A lot of people don’t realize that everything I learned in my 20 years in the stock market has translated into the crypto market and it puts me in a unique situation to understand what is going on right now. People that don’t understand how financial markets work have probably already exited Bitcoin after it doubled, tripled, and quadrupled.”
According to Moas, it is not advisable to sell your Bitcoin just for any price. Instead, investors and traders should treat it the same way bullish investors treated Amazon through its development.
“In the last 15 years, Amazon went from 20 dollars to $1,150, even though people were trying to short it the entire time, arguing that the company was not worth what it was trading at because up until a few years ago, Amazon was losing money on every single book they sold. There were some people that just didn’t understand how this thing was being valued so they bet against it and they got their heads handed to them on a plate.”
Moas aims his insights at Bitcoin bears that have just entered the market, warning them of a possible loss if they try to short the market.
“That is what will happen to the people that try to bet against Bitcoin. That’s why I’m not worried about what is going on in the futures market. The futures market is basically a stamp of approval on crypto and it legitimizes crypto as a new asset class. There will be a little bit of extra volatility now that CME and CBOE are involved but once Wall Street enters the arena, the floodgates will open.”
Who is Moas?
Ronnie Moas is the founder of StandPoint Research. He has appeared on various exclusive interviews with Cointelegraph to vent on his journey through Wall Street and his love for the crypto market.
The famous stock picker wears many hats. Even so, he insists that he IS NOT a billionaire, neither is he a former hedge fund manager, as some recent reports indicated. The 50-year-old admits that what he would hate most is a room full of the world’s tycoons. This sounds ironical, considering his involvement in the stock market for the last 20 years.
Moas says, “I am not a billionaire, and I would not want to be seen in the same as a billionaire. I am nauseated by the way they behave, I am nauseated by the amount of money they spend on themselves when we have people starving to death in this world.”
He goes on, “One needs to raise their voice, as speaking nicely to the people at the top of the vulture capitalist pyramid is not working well.”
Helping People to Become Wealthy
It is easier to understand Moas’ rage towards the wealthy lot. In his bid to bridge the gap between the rich and the poor, he has helped many people become wealthy. While many opulent billionaires choose to hoard their wealth, Moas has taken it upon himself to extend help to the less fortunate.
While he’s passionate about charity, Moas believes the inspiration stems from the nature of his upbringing and education. Born in New York, Moas grew up a city boy. At sixteen, his family returned to Israel, his father’s birthplace. Moas finished school in Israel and later enrolled for a degree after postponing it while serving in the Israeli military.
Growing up, Moas nurtured his ambition to become a self-made wizard with numbers. He returned to New York in 1994 and proceeded to complete a Masters of Business Administration at Baruch College, City University of New York. In addition to his Honors undergraduate degree in Economics and Business, Moas was destined for success.
Featured Image from Cointelegraph