How to trade in bitcoin, stocks and gold for a fraction of their value
The stock market is overvalued, according to the head of a leading bitcoin exchange.
The market for cryptocurrencies has been rising as a result of surging demand from Chinese investors, who are looking for safe havens from the volatility of their currencies, but the bubble has been growing exponentially since January.
“I don’t think it’s overvalued,” Peter Liu, co-founder and CEO of Mt.
Gox, said in an interview with Bloomberg TV.
“It’s just not overvalued.”
Bitcoin is a digital currency that exists on a peer-to-peer network.
It has become the preferred way for investors to store and transfer value around the world, often without going through banks.
The currency is traded for dollars, euros, sterling, yuan and other currencies.
Its price fluctuates from day to day.
Bitcoin prices peaked in 2014 at $10,600 and have since dropped as much as 40 per cent.
Lately, there has been a surge in the price of Bitcoin as people are taking advantage of it to buy things, including iPhones and Samsung televisions.
Liu said he thinks bitcoin will hit $1,000 or more by the end of the year.
“We’re probably looking at the end-of-2017 timeframe,” he said.
“I think bitcoin is very strong right now.
It’s very cheap.”
He said that even if bitcoin crashes, the value will still be higher than gold and silver.
Lifetime earnings are a key indicator for investors, Liu said.
“People are buying things that are worth more than $10 million and buying into the bitcoin network,” he added.
“So if the price goes down, that makes it more likely that they’ll get their money back and they’ll be able to pay it back in dollars, instead of dollars and euros.”
He thinks bitcoin’s price will continue to rise.
“If you look at the world stock market, there’s not much of a price appreciation,” he told Bloomberg TV, referring to how a stock price can go up and down for years.
“But if we can buy a bunch of bitcoins at the right time, the price is going to go up.”
He also said he does not believe that the current market is “crazy” and that the tech sector has been on a tear.
“Technology is moving in the right direction.
And the stock market has been moving in a way that is not crazy,” he noted.
“We are moving forward in the correct direction.
I’m not worried about the tech market.”