Finance expert Peter Boockvar said he could see bitcoin being around for a “long time” but the price could decline.
But Mr Boockvar, Bleakley Advisory Group CIO, said: “But the price itself, I wouldn’t be surprised if over the next year it is down to 1000-3000.”
Mr Boockvar said the fears bitcoin could implode and take the stock markets down with them are “more psychological”.
He told CNBC: “Now, maybe in South Korea and Japan and even in the US, where people are taking on credit card debt to buy coins. Yeah, they are going to be necessarily contacted.
“I think we have to look at it more broadly in the sense that the central bank bubble manifested itself in many different places and just recently cryptocurrencies.
“So cryptocurrencies roll over and collapse, then maybe that’s a sign that the risk-taking attitude of investors is changing. Maybe that’s because of monetary tightening that intensifying this year.”
He added, “I don’t see it having a major impact if the price of bitcoin continues to decline.”
Bitcoin price increased to $11,295.69 at 10.15pm on Friday, according to CoinDesk. It saw its highest value before Christmas when it reached the monumental price of just under $20,000.
Mr Boockvar said the bitcoin boom is likely to have emanated from central banks because there was a demand for an alternative currency that can’t be “debased and inflated” by central banks and can be used as a meaning of exchange.
Bitcoin is a cryptocurrency not controlled by a single administrator and can be used to buy things worldwide electronically.
Bitcoin’s popularity has caused demand to skyrocket throughout 2017, pushing other cryptocurrencies like Ripple and ethereum to also take advantage of the cryptocurrency craze.
Ripple CEO Brad Garlinghouse said the new cryptocurrency is focused on working with banks and other institutions to “dramatically improve” the way money moves globally.
Ripple is speeding ahead to become the world’s second-biggest cryptocurrency and it announced in January that XRP will be used on the top three money transfer sites.
Ripple’s XRP currency was trading at about $0.006 per token at the start of 2017, before a remarkable 12 months saw the cryptocurrency surge to an all-time high of $3.84 on January 4 – an increase of nearly 64,000 percent.
According to coinmarketcap.com, Ripple was trading for $1.56 at 10.16pm on Friday.
Forecast form a panel of experts predict bitcoin will remain top dog, with a market cap of $597.95 billion, followed by Ripple at $460.00 billion.