The same Hong Kong cryptocurrency trader that successfully predicted the dramatic Bitcoin price surge in the final quarter of this year has made a forecast that the rally of the world’s most valuable crypto is far from over.
Dave Chapman is the managing director of Octagon Strategy, a cryptocurrency trading firm, has stated in an interview with CNBC’s “Squawk Box” that his prediction of Bitcoin prices more than doubling in the fourth quarter of 2017 and reaching $10,000 before the end of the year was met with derision by many market analysts.
“I was quoted back in August when bitcoin was trading at around $4,000 that we would have a five figure headline by the end of this year,” he said. “I think a lot of people thought I was crazy, a lot of people scoffed at me, but that’s OK.”
Despite the negative predictions of Bitcoin opponents, the value of Bitcoin has met- and then dramatically exceeded- Chapman’s predictions. At the time of this report, Bitcoin is currently valued at $16,899, fueled by a 20% rally linked to the recent launch of CBOE’s regulated Bitcoin futures contracts.
Many market observers attribute this dramatic increase in Bitcoin value to rampant speculation. Chapman himself has conceded that he is somewhat concerned about the current “heat” of the market, but denies that the value of Bitcoin is driven purely by speculation.
“Bitcoin allows the immediate transfer of value from one individual in the world to any other individual in the world, and it does that without a middle man. That’s its value, If you look at bitcoin and its impact on finance, it’s really not that crazy to think that bitcoin could be an extremely huge disruptor to finance as we know it today.”
The launch of Bitcoin derivatives, according to Chapman is a key sign that the cryptocurrency market is maturing, and added that he would “not be surprised” if Bitcoin reaches more than $100,000 per coin by the end of 2018. Becoming too fixated on cryptocurrency prices, warned Chapman, could lead to people losing sight of the truly disruptive and revolutionary aspects of blockchain technology:
The price to me is probably the most uninteresting component about bitcoin. I’m more excited in the applications and more excited about what this means for people who don’t have access to financial inclusion.If we focus on the price, we’re losing track of the big picture.”