Stock research analyst Ronnie Moas stated he bought bitcoin this weekend and thinks it could reach $5,000 within a year.
“$5,000 could occur in a few months. It’s only starting to gain traction at this time,” Moas, founder of Standpoint Research, told CNBC in a telephone interview Wednesday. “It’s starting to spread like wildfire right now.”
He pointed out that because only 21 million bitcoin can exist, increasing demand for the digital money will drive up its price.
Bitcoin briefly tripled in value this year, hitting a record $3,025.47 on June 11, according to CoinDesk. The digital money traded Wednesday near $2,600, still more than twice its Dec. 31 price of $968.
“This is not something I could keep my hands off of,” Moas stated. “What could be more painful than losing [money in cryptocurrencies] is not acting.”
The research analyst said he invested a few hundred U.S. dollars each in bitcoin, ethereum and another digital currency called litecoin through Coinbase.com. After a report is released by him Moas said he intends to invest more.
The research analyst’s perspective on bitcoin joins the views of others on Wall Street. In a note Sheba Jafari said on Sunday, Goldman Sachs ‘technical analyst that bitcoin could rise as high as $3,915.
But “this has a long , long way to go before it gets to bubble land.”
Moas’ reasoning is so little of capital is in cryptocurrencies right now without becoming overvalued the young currencies can absorb more of those funds.
McKinsey Global Institute estimated that the value of the world’s stocks and debt rose to $212 trillion in 2010.
On the other hand, CoinMarketCap data showed the market capitalization of cryptocurrencies has grown from under $20 billion at the start of this year to approximately $100 billion, still less than a tenth of global capital markets. Bitcoin has a market value of about $42 billion, according to CoinMarketCap.
“There’ll be scams, there will be reports wiped out, there will be people that get hurt, like every other technology that is happening,” Moas stated. But “I think the cryptocurrency is here to remain. I believe we are in the second inning of a 9-inning ball game”
Many, including some on Wall Street, consider that the technology behind bitcoin can fundamentally alter how the world operates like the internet did.