The finance expert at cryptocurrency project Hedge is concerned investors are headed towards a scenario reminiscent of the 1990s DotCom bubble.

Mr Dekleva theorised will face several more years of turbulence before the token stabilises as a legitimate commodity.

The Switzerland-based analyst said: “In my opinion, it will be at least 10 years before we see stability”.

This could be further hindered by intense Government regulation from the likes of China, Mr Dekleva added.

But there is still a good chance that towards the end of that decade, digital currencies as a whole will become more widely accepted.

By cutting out the thousands of lesser known tokens that have failed to carve out a portion of the crypto market, the leading virtual currencies could strengthen.

These are coins with diminishing value, such as dentacoin, which was created to only serve as a payment method for dentists. As of 12.39pm on Wednesday February 14 the token is only worth just over $0.001. 

And in time Mr Dekleva thinks that even hardline nations such as China will have no choice but to allow bitcoin operate within its structures or risk losing out on the benefits provided by the token. 

Mr Dekleva said: “In the short-term, falls have been driven by emotion and in many cases disinformation – a small rumour can have a big impact.

“A lot of new projects have a stop-start phase and this is to be expected, but it is certainly not something that is normal is a traditional market place.

Bitcoin price: BTC token

Bitcoin price forecast: Kristjan Dekleva believes BTC faces another decade of fluctuation

“Demand is driven by market speculation, but the absence of institutional investors means the market is unstable.

In my opinion, it will be at least 10 years before we see stability

Kristjan Dekleva, Hedge

“You could compare this to the state of the internet in the 90s, it needs to grow people’s acceptance of it. We are not there yet.

“In my opinion, it will be at least 10 years before we see stability. By then, more useless coins will have been fished out, and there are quite a few out there.”

The expert added: “The future is in cryptocurrency.”

Growing awareness and acceptance of cryptocurrencies could be the key to their futures success if Mr Dekleva is right.

Even with attempts to ban or limit crypto trade in countries such as China, India and South Korea, the expert thinks the efforts are ultimately futile. 

Mr Dekleva said: “You cannot ban it, but what you can do ban is equity exchanges that convert to cryptocurrency.

“There are a lot of potential problems if people have Bitcoins which they cannot exchange for currency – if they don’t have money, it takes a lot of equity off the market.

“With China, it sees its best interests in not allowing the outflow of currency, but in the long term it is fighting a losing battle around this.

“China will have to accept it as legitimate in perhaps ten years, but who knows?

Bitcoin price: BTC token

Bitcoin price: Mr Dekleva is not convinced cryptocurrencies can take over fiat currencies

“This is a new market and everyone is an expert.”

And yet in the long term forecast, Mr Dekleva does not see bitcoin overtaking fiat currencies as the go to money for the majority of people.

Instead, in his opinion crypto tokens are more likely to strike some sort of balanced role within the current world of finance.

Mr Dekleva added: “The answer is that it will not overtake it for the majority of people.

“A central bank can intervene and stabilise rates, and that is not possible with cryptocurrency.”

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