Bitcoin Cash Wasn’t Such a Bad Thing and there is no certain thing such as bitcoin price prediction but is there any case for buying the crypto after the massive price rise?
Although investors braced for impact when Bitcoin split on August 1, it turns out they needn’t have worried so much. The Bitcoin vs. Bitcoin Cash face-off ignited a rally that took BTC prices from $2,600 to over $4,000 in just a handful of weeks.
But is that the end of it? Bitcoin wandered as far as $4,477 last week before reverting to $3,929.24, so naturally investors are unsure how to proceed. These are uncharted waters.
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It’s tempting to sell Bitcoin and head for the exits, but what if the price continues to soar?
Therein lies the difficulty, dear reader. In investing, questions that start with "when" are harder to answer than ones that start with "what."
Some traders, like George Soros for instance, need to experience a physical symptom before executing their trade. Soros famously made a billionaire-dollar bet because his back was hurting, which is not a strategy I would encourage anyone else to try.
Other investors spend months researching a trade, mapping out all the probabilities and double-checking their favorite metrics.
Whatever your style, the endgame is always the same: “Buy low, sell high.” That is the prism through which all investment decisions must shine.
So ask yourself: At $4,000, does the Bitcoin price have unexplored upside potential? Can it double to $8,000 or is this the pinnacle of Bitcoin’s historic run?
Only after answering these questions should you make your decision.
Bitcoin Price Prediction - Does BTC Have More Room to the Upside?
There are convincing arguments on both sides of this debate. Here’s a quick summary of each position for those who may not be familiar.
No, Bitcoin Has Peaked
Years and years ago, it took 10,000 bitcoins to buy two large pizzas. Today, that many bitcoins are worth approximately $40.0 million, meaning that Bitcoin has appreciated by a heck of a lot already.
To the casual observer, this suggests that Bitcoin is nearer the top than the bottom.
This argument is bolstered by the rise of Bitcoin-alternatives, like Ethereum and Ripple. Some Bitcoin purists try to dismiss these “altcoins” as pale imitations, but that is not strictly true.
Ethereum offers genuine distinctions from Bitcoin, including novel features like “smart contracts.” It also processes transactions more quickly, which, if my memory serves me correctly, was supposed to be a major selling point for Bitcoin.
Fast, free, frictionless payments. That was the pitch in favor of Bitcoin, yet it currently takes hours—if not days—to send a Bitcoin transfer.
The problems with scaling and speed have hindered the Bitcoin price prediction in the past, and since both issues were not fully resolved by the Bitcoin fork, they will likely continue to harm the Bitcoin price going forward.
Yes, Bitcoin Has More Room to the Upside
However, a more experienced set of eyes would see that Bitcoin’s supply is finite, making its price more valuable over time. Unlike fiat money, no one can print any more of it. Its value is literally designed to appreciate over time.
That means it still has room to the upside.
In addition to this supply constraint, Bitcoin is also taking on a new role in the wider cryptocurrency market.
It is becoming the reserve currency for “altcoins” like Ether (the native token of Ethereum), Ripple, Dash, Litecoin, and others; much like the U.S. dollar acts as a reserve currency for global exchange rates.
So while it’s true that investors have been rushing towards altcoins—the cryptocurrency market cap shot up 745% in 2017—it’s important to note that Bitcoin has shown resiliency throughout.
In fact, BTC prices are up 328% since the start of the year, suggesting that what’s good for the overall market is also good for Bitcoin.
bitcoin price prediction - Analyst Take:
I lean towards the bullish position. Data shows that the Bitcoin price is flourishing in today’s orgiastic market for cryptocurrencies, with little to no indications of a Bitcoin bubble. Why would that suddenly change?
A correction is certainly possible, though not overwhelmingly likely. And even if there is a slight taper, Bitcoin is likely to rebound when the next batch of use cases are developed.
After all, the likelihood of one cryptocurrency sweeping the market is next to none. What’s more probable is that we’ll see an emergence of tokens with very specific purposes, with Bitcoin (and possibly Ethereum) as the go-between. As such, we maintain our Bitcoin price prediction of $10,000 by the end of 2018.
Article By Gaurav S. Iyer