You get all kinds of opinions about Bitcoin these days. Many do not believe in it at all, and have decided to remain on the sidelines. Others have tentatively dipped their toes in the water, and purchased a small amount of Bitcoin just to see what will happen.
You will also find any number of analysts and TV personalities making predictions about the future price of Bitcoin. It’s all well and good to make predictions, but what if you challenged them to “put your money where your mouth is.”? How many of them would take that challenge?
Well, CNBC posts an article about a person that has done just that, and to the tune of $1 million. Now that is some commitment! According to the article, about $1M was spent on options that expire on 12/28/2018, and will only make money if Bitcoin is above $50,000 before then.
The trade gives the investor or investors the option to buy bitcoin at $50,000 in the roughly next 12 months, implying expectations that the digital currency will soar beyond that price. An investor would lose the bet if bitcoin doesn’t reach $50,000 in that time period, but would reap profits if it climbs well above that level.
With bitcoin trading near $16,700 Thursday, that means the call options trader or traders expect the digital currency to soar more than 200 percent in the coming 12 months.
I certainly don’t know where the price of Bitcoin will be in a year’s time, but I am interested to watch what happens with Bitcoin and the whole cryptocurrency space in 2018. There are so many catalysts for a sharply higher price that I wonder if in the years ahead we don’t all look at $50,000 as cheap. Only time will tell.
For the original article, check out cnbc.com