Bitcoin has dipped below $7,000, but traders believe it will reach $50,000

Investment Firm Managing Partner Sees Bitcoin Hit $50,000 This Year

As bitcoin dips below $7,000 to $6,467 at press time, most investors start worrying about the crash and share stories about how much money they lost. According to Business Insider, institutional players are taking a long-term approach, and see bitcoin’s true potential on the horizon. Anthony Pompliano, a managing partner at investment firm Full Tilt Capital, is one of the believers. He sees bitcoin hit $50,000 this year.

Every time bitcoin crashed in the past, it bounced back. This is part of whats behind Pompliano’s reasoning. While his firm invests in cryptocurrency infrastructure and technology and not actual coins themselves, the former Facebook product manager believes this won’t be the end of the flagship cryptocurrency.

He noted that he doesn’t know how long the cryptocurrency will last, adding that he doesn’t believe anyone can call that. He said:

“If you ask most institutional investors, one of the most valuable aspects of bitcoin is that every time something has occurred that should kill it, it doesn’t die and it comes back strong. I think that element of bitcoin is incredibly powerful and highly underrated.”

To the venture capitalist, the same forces that dragged the Dow Jones Industry Average down by 1,700 points in two days were behind bitcoin’s volatility. However, he added that cycles, both good and bad, happen in the world of crypto. This, as bitcoin and other cryptocurrencies, are traded globally and can dramatically swing upon certain news.

According to Pompliano, historically it has been “very difficult for individual investors to time markets.” As such, his advice is to buy an asset, hold it, and not worry about its price. Day trading volatile assets like cryptocurrencies, he says, isn’t a good idea.

Focusing on bitcoin, not just prices

Robin O’Connell, chief revenue officer at cryptocurrency exchange Uphold, was less bullish on bitcoin. He noted, however, that cryptocurrencies aren’t going away any time soon, as it’s about the technology and innovation behind them, and not just about their price.

He stated:

“Anyone you talk to who says they know whether this is the bottom is giving you their best guess. Who knows. If you as an individual believe that crypto is here to stay — and obviously at Uphold we believe that — then [you believe] at some point this is going to correct itself.”

Addressing those who say bitcoin has no intrinsic value, O’Connell said the problems it solves justify its value. The ability to transfer money to any country in the world in an instant, and to use blockchain technology to power smart contracts, for example, mean crypto is here to stay.

Others pointed out that the cryptocurrency markets aren’t the only ones with red candles all over. While swings are natural for bitcoin and other cryptocurrencies, 5% intraday swings are worrisome in traditional markets.