News, Culture & Society

Bitcoin predicted to be worth $100,000 Australian dollars within a week

Bitcoin is expected to be worth $100,000 for the first time within days as global inflationary worries spur interest in cryptocurrencies.

Only a year ago, the world’s first cryptocurrency was worth $27,000.

But early on Wednesday morning, Bitcoin surged to an all-time high of $92,424 before retreating to $90,000 three hours later. 

Despite the volatility, Fred Schebesta, co-founder of financial comparison group Finder, predicted Bitcoin would be worth six figures, in Australian dollars, within days as investors embraced irreplaceable non-fungible tokens and decentralised finance.

‘With the pace of Bitcoin right now and the momentum for NFTs and Defi, I am expecting Bitcoin to reach $A100,000 within the next week,’ he told Daily Mail Australia.

Bitcoin is expected to be worth $100,000 within days for the first time ever as global inflationary worries spur interest in cryptocurrencies. Only a year ago, the world’s first cryptocurrency was worth $27,000. But early on Wednesday morning, Bitcoin surged to an all-time high of $92,424 (pictured is a stock image)

‘There is too much momentum, there are so many people involved, it’s too big now to stop. Bitcoin’s “pumpamentals” are strong.’

A spike in American inflation to 5.4 per cent in September and a shortage of consumer goods as a result of global Covid supply constraints have helped cryptocurrencies.

Australia’s annual inflation rate of 3 per cent in September is at the top end of the Reserve Bank of Australia’s 2 to 3 per cent target. 

High inflation elsewhere is inviting comparisons with Zimbabwe and Venezuela, causing rising demand for cryptocurrencies where there is less trust in central banks and the government.

‘Economic volatility, especially in countries with a weak economy and hyperinflation are helping to push the demand for cryptocurrency,’ Mr Schebesta said.

In Australia, the cash rate is at a record low of 0.1 per cent and the big banks are offering average savings rates of just 0.26 per cent.

‘Interest rates are at record lows, people can’t earn interest by leaving FIAT currency in a bank,’ Mr Schebesta said.

‘People are earning incredible results from crypto, NFTs and decentralised finance, such as play-to-earn video games like Axie Infinity and Guilds to help access these games such as Balthazar.

Despite the volatility Fred Schebesta, the co-founder of financial comparison group Finder, predicted Bitcoin would be worth six figures within days as investors embraced irreplaceable non-fungible tokens and decentralised finance

Despite the volatility Fred Schebesta, the co-founder of financial comparison group Finder, predicted Bitcoin would be worth six figures within days as investors embraced irreplaceable non-fungible tokens and decentralised finance

‘As more people have access to these new ways of making money there will be a big shift away from traditional finance.’

Twitter’s billionaire founder Jack Dorsey, an advocate for cryptocurrencies, warned in October of global hyperinflation.

Mr Schebesta, who is worth an estimated $340 million by The Australian Financial Review, in May launched a Finder app enabling users to buy and sell Bitcoin and Ethereum.

That was also a very volatile month, which saw Bitcoin lose a third of its value within a week, plunging from $74,000 to $50,000, after Tesla’s billionaire founder Elon Musk changed his mind on accepting Bitcoin as payment for his electric cars. 

The 50-year-old tycoon argued cryptocurrency mining, creating Bitcoin by solving complex mathematical puzzles, used too many fossil fuels and his declaration causing a 16 per cent plunge in just one day.

Despite that uncertainty, Mr Schebesta insisted investors who bought cryptocurrency on his app made a profit.

Twitter's billionaire founder Jack Dorsey, an advocate for cryptocurrencies, warned in October of global hyperinflation

Twitter’s billionaire founder Jack Dorsey, an advocate for cryptocurrencies, warned in October of global hyperinflation

‘Everyone who has bought crypto in the Finder app has made money,’ he said.

The Bitcoin recovery even caught Mr Schebesta by surprise, with the Finder boss telling Daily Mail Australia in August he expected Bitcoin to reach $87,000 by the end of 2021.

That milestone was surpassed on November 8. 

Governments around the world are still trying to work out how to guarantee the property rights of cryptocurrency investors, so blockchain digital currencies are a tangible asset like shares or bonds.

While El Salvador in September became the first country in the world to legalise Bitcoin as a legal tender, China during that same month banned cryptocurrency trading.

Musk in March bought $US1.5 billion of Bitcoin, sending its price to a record $US60,000 or $A80,000.

This saw Bitcoin post 500 per cent annual growth.

Mr Schebesta, who is worth an estimated $340 million by The Australian Financial Review, in May launched a Finder app enabling users to buy and sell Bitcoin and Ethereum. That was also a very volatile month, which saw Bitcoin lose a third of its value within a week, plunging from $74,000 to $50,000, after Tesla's billionaire founder Elon Musk (pictured) changed his mind on accepting Bitcoin as payment for his electric cars

Mr Schebesta, who is worth an estimated $340 million by The Australian Financial Review, in May launched a Finder app enabling users to buy and sell Bitcoin and Ethereum. That was also a very volatile month, which saw Bitcoin lose a third of its value within a week, plunging from $74,000 to $50,000, after Tesla’s billionaire founder Elon Musk (pictured) changed his mind on accepting Bitcoin as payment for his electric cars

***
Read more at DailyMail.co.uk