Right now, volatility is bitcoin’s second name. Regarding price swings, no other commodity dead or alive does it better than the world’s number one blockchain-based cryptocurrency. Bitcoin demonstrated how volatile it could be, when it kissed $19,666 earlier in the week, from just trading at less than $1,000 before January 2017.
However, the bitcoin price saw a heartbreaking correction that pulled back to just above the $10,000 price region on December 22. At the time of writing, the cryptocurrency has started showing signs of going back toward the all-time high, with the price near the $15,000 price region.
The $50,000 Bitcoin Bet
While a lot of bitcoin skeptics are busy predicting the downfall of the king of cryptos, there is one man that has shocked the world by placing a one million dollar wager on the possibility of the bitcoin price hitting $50,000 by the end of December 2018. For even the most die-hard bitcoin enthusiasts, this has to be one of the the craziest plans of the year.
As reported by Fortune, the anonymous person or even people, purchased the options contracts of approximately $1 million, on the LedgerX derivatives exchange.
An insider of the exchange who witnessed the event has said: “the trade wagering on a move to $50,000 was the first of its kind on LedgerX… Just under $1 million was paid for the options in one or more trades that took place during the 24-hour period ending at 4 p.m. Eastern Time on Wednesday, the records show. It is unclear from LedgerX’s data who the buyer or buyers were or whether the purchasing was done in multiple transactions or just one.”
“If bitcoin is below $50,000 on December 28, 2018, the options will expire worthless, and the $1 million will be lost. If bitcoin rises above that level, the options will give their owners the right to buy 275 bitcoin for $50,000 apiece-a transaction that would cost about $13.8 million.”
Whoever the investor is may have seen a crystal clear revelation of where the bitcoin price would be by December 2018. At least that’s how appears right now, considering the huge drop in the bitcoin price on December 23. However, if one takes a closer look at the level of popularity the cryptocurrency has gained presently, coupled with the disruptions that bitcoin and blockchain have brought to the world of finance, then you will realize that it is entirely possible for bitcoin to hit $50,000 in 2018.
It remains to be seen if the $1 million bitcoin bet will be a winning bet or a loser; come December 2018 BTCManager will be here to tell you the story.