This week, Bitcoin dipped down to a $4,037 low after China announced it would crack down on cryptocurrencies.
On Friday, September 1, Bitcoin hit a phenomenal new high of over $5,000 before falling back with further price declines. Commentators refer to the astonishing continuing price increase as a "bubble." But is it?
"Unlike all previous infamous bubbles, Bitcoin is both an investable new asset class that won't go away and can also be used as 'money' to transfer value," said Michael Parsons, a Bitcoin entrepreneur at the UK Digital Currency Association. "It is as if the world has discovered, and is still discovering, the sudden availability of a new digital quality asset hoard which is a good alternative to physical gold and likewise with a limited known supply. And that is one of the underlying bitcoin price drivers."
Despite the blip this week, Kamil Przeorski, co-founder of platform Experty, remains hopeful the price will continue to climb.
"Bitcoin's price is very likely to continue its trajectory in the next few years," Przeorski said. "As long as Bitcoin's technical fundamentals don't break, the price shall follow up to $10,000 in the next year. The current price level is much higher than expected at the beginning of 2017 -- which is a very nice surprise to the community, that we are going to hit $5,000 mark even before the other experts in the field expected."
For the people who want to join the Bitcoin and blockchain revolution, the best option is to buy small amounts of cryptocurrency.
"When you see bitcoin price on a discount then you should reconsider buying even more," he said. "The other part of the demand for cryptocurrencies world comes from Token Generation Events. For example, an Experty IO Token that we are working on will create a new opportunities to unlock untapped human productivity worldwide."
Xavier Hawk, co-founder of Phireon Global Partners likens the Bitcoin boom to the tech bubble of the mid '90s as a reference.
"The reason we have a 'bubble' at all is because there is an underlying technological advancement that everyone knows is something, but they don't quite know how that something will be deployed," Hawk said. "After all, no one knew the internet would be used primarily to share pictures of cats. Go figure."
Are you investing in cryptocurrency? Don't miss TheStreet's coverage:
- Why Bitcoin Cash Prices Are Likely to Dive Again
- Forget IPOs: How Do Companies Know If an ICO Is Right for Them?
- Bitcoin to Take Over Civilization
- How Cryptocurrency Mining Works Explains Why AMD and Nvidia's Sales to Miners Might Soon Fall
- Bitcoin Mania Setting Up for Greatest Financial Crash in 400 Years
- Bitcoin Skyrockets to Record $3,525 as a Buying Binge Is Unleashed
- Bitcoin Surges to Record Price Despite Technology Debate
- Bitcoin Investors Must Report Gains to the IRS
Hawk believes that Bitcoin price will continue to skyrocket. "As will each and every other crypto along with it," Hawk said. "We will see considerable money pour into it from very very centralized control centers in efforts to bring down the price so they can buy it back up at lower prices. After all, it would only take a couple hundred million to lower the price considerably. This is what happened in 2015. Not many people know that. Right now there are considerable holdings waiting to be sold and dumped into the market in an effort to bring the price down. I'm fairly certain of it."
In the future, we can expect to see some corrections, Hawk added -- perhaps even of a massive nature.
"Many people will cry out, 'Behold! The Bitcoin bubble is popped!'" he said. "Meanwhile behind the scenes, the truly powerful and savvy will be buying up as much as they can because it will not die. It will simply get more capable and rise again."
As the Bitcoin market develops ,we just have to ride out the highs and lows of Bitcoin.
More of What's Trending on TheStreet: