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Bitcoin surpasses $63,000 on way to new record value

Experts are advising caution because currencies aren’t supposed to appreciate this rapidly

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Photo (c) diyun Zhu - Getty Images
As all eyes are getting ready for Wednesday’s public debut of Coinbase, Bitcoin celebrated a little early by climbing up to $63,250.20 in value on Tuesday.

Some analysts think the crypto party could get even louder when Coinbase goes public, raising the value of the digital marketplace to as much as $100 billion. Experts say Bitcoin’s value could also rise by another $3,000 by tomorrow if it continues to trend upwards as it has over the past 24 hours. However, investors who want to jump on the cryptocurrency’s bandwagon need to understand that the coin has a habit of rather dramatic herky-jerky performances.

Ether, entrenched as the second-most valuable digital coin after bitcoin, was also setting a new record in Tuesday trading, hitting $2,293.12.

Is cryptocurrency ready to be a real thing?

Crypto cheerleaders are all-in on the Coinbase debut because they think it could be a watershed moment for the industry after suffering doubt from financial regulators and Wall Street. 

Investors might finally sit up and take notice if Coinbase hits town like it’s expected to. If the digital marketplace does make it to a $100 billion valuation, that would make it worth more than Intercontinental Exchange, the owner of the New York Stock Exchange.

“This is really good and really important for the industry,” Marcus Swanepoel, CEO and co-founder of London-based cryptocurrency platform Luno, told CNBC. “It’s going to increase the trust and transparency in our industry.

“There’s still a bit of distrust in the industry and I think having a company of that size be public is going to help a lot of people realize that this is not just an asset class to take seriously but also a business to take seriously.”

Experts say consumers should be careful

All of this hoopla might cause speculative investors to throw a bunch of money at cryptocurrencies in light of how Coinbase’s IPO might shake out. Evan Thurmond, a founding partner at Lifetime Wealth Strategies, says if you’re tempted to be one of those folks, you might want to exercise caution.

“Yes, at the moment, there is more interest in bitcoin than there is in other currencies. However, people have to understand that currencies are not supposed to appreciate so rapidly as bitcoin has relative to other currencies,” he told ConsumerAffairs.

“Be careful. Do not be afraid to hit the sell button. Anyone can get lucky and make money, but hogs always get slaughtered.”

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