Bitcoin had the time of its life in 2017.
Investors were stunned when its price reach almost $20,000. However, there were those that thought Bitcoin’s bubble had burst when it plummeted in value at the turn of the new year. So what can be expected with Bitcoin this year?
Well, a mix of hopeful opportunities and growing pains.
Knowing how volatile the cryptocurrency has become after skyrocketing in value from $1,000 to $20,000 in a matter of just a few months, it’s safe to say that governments will be regulating the cryptocurrency.
The number of hacking incidents is also growing, not to mention that there are reports that Bitcoin is being used to fund terrorism. The only way to stop these is by implementing new policies that will regulate the crypto market. Policies and regulation should at least reduce hacking attempts and the misuse of Bitcoin funds.
If regulation is implemented (which is likely to happen this year), then we can expect the price of Bitcoin to drop. Where Bitcoin’s price will be when this occurs in anyone’s guess, however, history has taught us that with regulation comes uncertainty.
Take for example China’s crackdown on Bitcoin trading platforms in September last year. The Bitcoin market was quickly affected, and its price dropped by $2,000.
Better Market Acceptance
Bitcoin will also experience a greater market acceptance this year. Crypto analyst Michael Graham said that the market is willing to learn more about the cryptocurrency so that they may use it for practical uses one day. It turns out that the media has already been helping this cause for years, and now, even big bankers such as JP Morgan are jumping on the crypto-train.
With the many news headlines about Bitcoin and other cryptocurrencies, it is working towards mainstream acceptance, even if it isn’t widely used yet. But what makes this possibility even more promising is that it isn’t just individual users who are going to hop into the crypto craze, but huge institutions and companies as well.
Even More Volatility
You may have thought that 2017 was Bitcoin’s “wildest ride.” In fact, it’s forecasted that Bitcoin will even be more volatile this year. BlockTower Capital executive Ari Paul predicts that Bitcoin will be priced anywhere between $4,000 to $30,000 this year.
One of the reasons why this might happen is because of the growing demand from investors to further split the digital currency, as happened when Bitcoin Cash was created.
Shift into IPO Investment
Initial Public Offerings (IPO) will also become a trend in the crypto community. Digital currencies are becoming more enticing as thousands are trying out their luck in the new technology. Former SME crypto firms have even become billion-dollar companies — proof of how profitable the new market is. ICOs will still remain a thing, but IPOs will be worth paying attention to.
Coinbase is a good example. The crypto exchange firm is now valued at $1.6 billion and is likely to become more valuable this year. Because of this, Coinbase, just like other crypto businesses, will resort to dealing with IPOs as this will significantly improve their profitability.
However, investors need to be very careful when dealing with new companies. There are now many businesses that relate themselves to cryptocurrencies even though they do not have any legitimate crypto experience or background.
Bitcoin, just like other cryptocurrencies, will have a wild ride this 2018. Millions want to be part of the crypto phenomenon, and with it, will come many challenges that may either propel Bitcoin into greater heights or plunge it towards failure.