Here’s What the Experts Say About Bitcoin in 2018
The year 2017 has been an excellent year for Bitcoin. As 2018 kicks off with other cryptocurrencies soaring in value, Bitcoin a decentralized cryptocurrency will be celebrating its tenth birthday. With the influx of several cryptocurrencies, the question is “What awaits Bitcoin as it enters its second decade?”
- The price could go higher ten times
Although Bitcoin has experienced an unexpected surge in price towards the end of 2016, some analysists believe that the value of Bitcoin could go higher ten times in 2018. It had a high record of $19,783, and by the end of the year, it was at $13,889.
- Investors might look for alternative cryptocurrencies
Alternatives such as Ripple and Ethereum seem to have their moment as well. For instance, Ripple has increased tenfold over the past one month. Arjun Kharpal stated in a CNBC story that investors seem to take a break from bitcoin and now they are looking for alt-coins.
As bitcoin continuous to prevail, the prices of other cryptocurrencies (altcoins) will continue to grow. Despite bitcoin dominance over the years, about half of the transactions do not involve bitcoin. Investors are now venturing into other cryptocurrencies, and they are using them for trade. However, analysists believe that Bitcoin will remain the best crypto because it is more secure.
- Concern for future markets
Traders have been urged to agree on prices based on the predicted prices by the Chicago Board Options Exchange. However, there has been raised concerns about the low number of contracts. At the end of 2017 only 1098 more contracts had been opened from the end of the first week to December 29.
Peter Tchir who is a global macro expert stated that the asset and the contracts class are behaving like any ordinary overbought asset and they do not encourage future price action. The buying interest at the set prices are in succession running out.
Also, there will be more interest from institutional investors to venture into the cryptocurrency industry. In the past years, institutions have focused on venturing into the cryptocurrency field, but most of them could not raise funds required. As the value of cryptocurrencies continuous to increase the industries will not have any option but look for capital to invest in the sector.
- Bitcoin is more likely to reach unmatched heights in 2018
Although not everyone is troubled about Bitcoin movement, John McAfee who played a significant role in making the first commercial antivirus software believes that Bitcoin still has a great future. He says that Bitcoin is still the crypto giant. He further states that Bitcoin has the lowest circulating supply compared to other alt-coins. He believes that Bitcoin prices could still go higher.
- Which mark will Bitcoin hit first?
Julian Hosp who is the co-founder of crypto firm TenX and a cryptocurrency entrepreneur believes that Bitcoin has two marks that it is supposed to hit. That is the $60,000 mark and the $5,000 mark. It all depends on bitcoin circulation and acceptive in 2018.
- Crash in the market could contribute to a disaster
As transactions times have increased, only 1,000 individuals own 40% of the global Bitcoin supply. This gives them the power to pay high fees and acquire the money before others. That means Bitcoin continuous to circulate only is a small section of the market. This makes it more valuable, and it can only be used for the significant transaction because of its scarcity.
- Bitcoin will circulate more
Mike Novogratz a billionaire who has put 30% of his worth in Bitcoin believes that it will be crazy if crypto bubble hits $10 trillion which is 20X more than what it is today. Additionally, more evidence shows that more people are willing to purchase Bitcoin in the coming years. Due to that Spencer Bogart states that cryptocurrency is more likely to hit $50,000 in the coming years. An October poll done by Harris disclosed that only 2% of own American Bitcoin. The survey showed that 19% are more likely to purchase bitcoin in the next five years which represents tenfold upsurge in market size.
As Bitcoin continuous to circulate more, there will be a need for more regulation. However, the blockchain technology cannot be hindered by any form of regulation. Bitcoin will remain a decentralized currency.
- Forcing the prices higher
Considering the supply side of the equation, most of the Bitcoin is locked down with long terms holders. Hence, there is no enough supply. Also, there is a new uptick on the retail side. The scarcity of Bitcoin forces the price to go higher.
Although the predictions seem exact, we are yet to experience the suggestions put forth. At the end of 2016, analysists predicted a price of approximately $1,500 and $3,000. However, this did not happen in 2017, they were wrong, and they can be wrong again.