With Bitcoin surging almost every day, the important question of how high it can go arises in everyone’s mind. One of the investors thinks that the bitcoin value will continue to increase and can touch Rs. 37,50,000 in near future. Not only that, the investor has also put money on it as he bets Rs. 7,50,00,000 (Rs.7.5 Crores) on it.
According to the reports on Wall Street Journal, the mystery investor or investors have purchased the options contracts worth approximately Rs. 7,50,00,000. These contracts are sold on LedgerX derivatives exchange and they are nothing but ‘calls’ that allow the owner to pay Rs. 37,50,000 (Aprox estimated value equaled to USD) by the end of next year for purchasing the units of the popular cryptocurrency.
This kind of trade was unique and first of its kind on LedgerX. The records show that the trades that took place during the 24- hour period ended at 4 p.m. ET on Wednesday and just under Rs. 7,50,00,000 was spent for the options in multiple trades. However, it is not clear about the buyers or if they transacted multiple times or only once to trade, from the data of LedgerX.
As on December 28, 2018, if the bitcoin value remains below Rs. 37,50,000, the options that were traded will be worthless and the mystery investor will lose the Rs. 7,50,00,000. But if the bitcoin rises above that level, the options will give the right to their owners to buy 275 bitcoins for Rs. 37,50,000 a bitcoin. This will cost around Rs. 103,50,00,000 during the transaction.
As the Journal notes, they will be worthless if the bitcoin value fails to reach the Rs. 37,50,000 mark by end of the next year. The call option by mystery investors is extremely risky even with the bitcoin. If it breaks the Rs. 37,50,000 mark, it will be nearly 150% increase in the bitcoin’s all- time high as it almost touched Rs. 15,00,000 mark this month. But this is highly improbable as the bitcoin was Rs. 75,000 at the beginning of the year.
But there is even more bad news for the unnamed investor as in the last 4 days, the bitcoin price stumbled to a recent low of around Rs. 11,40,000. This happened with a controversy involving Coinbase, a popular exchange and the increase in the price of a rival digital currency, Bitcoin Cash.
The conclusion of the above debate on Bitcoin Price :
Irrespective of the price of bitcoin high fluctuation and the recent downfall to an almost 25% the above bet on bitcoin price breaking to Rs. 37,50,000/- can’t be ruled out as this goes by the another statement from John Mcafee who had a similar bet on the price prediction of Bitcoin in near future . Apart from Bitcoin (BTC) price, I strongly feel that the prices of Bitcoin Cash (BCH) and Ethereum (ETH) are heading to match the price that of Bitcoin and even may take over cross the price mark of Rs.37,50,000/- and break the record . I’m pretty sure that by the time Bitcoin (BTC) price reaches Rs 37,50,000/- in near future the price of Ethereum (ETH) will be traded at Rs.50,00,000/- and the price that of Bitcoin Cash (BCH) will be equal to that of BTC.