Dec 18, 2017 UPDATE – As the world’s first and biggest cryptocurrency continues to grow, making a Bitcoin price prediction for 2018 is certainly a massive challenge. With Bitcoin having reached a new all-time high of $19,783 in recent trading, the astonishing ascent of the digital payment method seemingly knows no bounds.
Although the value of Bitcoin has receded slightly since reaching this peak, the price of the cryptocurrency has still increased stratospherically since the turn of the year. Back when 2017 dawned, Bitcoin was worth a ‘mere’ $1,000, meaning that its value has increased by an incredible 1,800 percent in the calendar year.
It is this sort of price increase which has polarized opinions on the future of the digital currency, and made any Bitcoin price prediction for 2018 fraught with danger. There is are those that are very much in the positive camp with regard to the future of Bitcoin, and those who believe that it will inevitably crash and burn in the near future.
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One possible issue that could impact on any Bitcoin price prediction for 2018 is government legislation. While the United States federal government doesn’t really have an official position on the cryptocurrency, other administrations have taken specific action. And the picture in Europe could provide a clue to the future legislative direction in the US.
European governments are currently pushing for regulation of Bitcoin and the general altcoin sector, following the unbelievable escalation in the price of Bitcoin. In particular, the fact that Bitcoin is strongly linked with nefarious activity conducted by money launderers, drug traffickers and terrorists is of concern.
French Finance Minister Bruno Le Maire has recently spoken on the subject, with the prominent individual indicating that the powerful G20 group will discuss the topic in the foreseeable future. The Italian government has indicated its similar willingness to open discussions on regulation, while there have been moves by the European Commission to deliver new legislation that would impact on the cryptocurrency.
“I don’t like it; it can hide activities such as drug trafficking and terrorism,” Le Maire said on LCI television, adding that he also had concerns for savers. “There is an obvious speculative risk, we need to look at it, study it,” he continued.
This sort of scepticism from some of the most influential countries in the world is obviously bearish for Bitcoin. And this European perspective follows hot on the heels of similar activity in countries such as India and China. But this doesn’t necessarily mean that Bitcoin price prediction for 2018 should be entirely negative in outlook.
One of the big plus points for Bitcoin going forward is the entry of the cryptocurrency into the futures marketplace. This will undoubtedly have a massive impact on the growth potential of the digital payment system, and could lead to a massive upside, even given the massive inflation in value that the currency has already enjoyed.
CME, the world’s largest futures exchange, recently launched its own Bitcoin futures contract, following the decision of the Cboe to do the same earlier this month.
And other analysts have also offered hope for Bitcoin investors. One of the biggest Bitcoin bulls, Ronnie Moas, believes that the meteoric much of the cryptocurrency will continue into a six-figure value in the coming years.
“Bitcoin is already up 500 percent since I recommended it in the beginning of July, and I’m looking for another 500 percent move from here. The end-game on bitcoin is that it will hit $300,000 to $400,000 in my opinion, and it will be the most valuable currency in the world,“ Moas commented.
The opinion of Moas is based on the limited supply of Bitcoin, meaning that the cryptocurrency can potentially escalate massively in value in a short period of time simply due to supply and demand issues.
Yet several major voices within the investment community have also poured scorn on the potential of Bitcoin, suggesting that the cryptocurrency is in a sizeable and dangerous bubble. While the credibility of these opinions should not be discounted, it should also be noted that the cryptocurrency can it be considered a threat to some of these established individuals.
Ultimately, Bitcoin price prediction for 2018 is extremely difficult. Any entity that increases nearly 20-fold in value in less than 12 months can reasonably be described as being in a bubble. And Bitcoin could encounter several problems in the near future, with legislative and technological issues both particularly threatening.
However, the arguments made by Moas, and the welcoming of Bitcoin into the mainstream investment fold, bode well for what has undoubtedly been one of the most dramatic investments stories of this or any other year.
With the recent huge growth in value, investors are currently speculating about a bitcoin price prediction for 2018.
The Recent Bitcoin Boom
With how much bitcoin valuation has fluctuated recently, investors are understandably concerned about whether this cryptocurrency is a reliable and safe investment opportunity. While certainly more volatile than many traditional investments, the huge boom in growth and ease of access is certainly appealing to both the experienced investor and optimistic first-time buyers alike.
Back in November, the value of the currency dropped nearly 30% before starting to climb to unprecedented heights. Coming up with a bitcoin price prediction for 2018 is difficult, but many experts are bullish when it comes to estimates of continued growth — at least for now. With how all over the place the value of bitcoin has been, it’s important to invest cautiously.
Perhaps the most important driving factor behind the sudden boom in value is the fear of missing out among first-time investors. When the first jump happened and news of bitcoin’s rapid increase in value hit the news, many people saw an opportunity to quickly buy in and take advantage of the climbing price. This sudden surge of new investment saw the price continue to climb, and currently, it shows no sign of slowing down.
Because bitcoin prices are not based on earnings as more traditional investments are, any bitcoin price prediction for 2018 is speculative and volatile. Despite these issues, bitcoin analysts are looking ahead to what we can expect for the coming year.
Bitcoin Price Prediction for 2018.
In an interview with investing website The Motley Fool, David Drake, the founder of LDJ Capital, has suggested that bitcoin will reach $20000 next year.
The reasoning behind this prediction, and behind many predictions from financial analysts, is the fact that there’s a limited supply of bitcoin. It’s a simple issue of supply and demand. With more and more people looking to get involved with bitcoin investing, and a limited amount of bitcoins available, the price of bitcoin will likely continue to rise. “here’s a fixed supply of it but growing demand, when that happens the price rises,” said Drake.
The code behind bitcoins is capped at 21 million lines, however, there’s only 4.3 million of them above the current supply. It’s likely that the supply available to investors will continue to deplete, driving prices up to that possible $20000 valuation.
However, due to how volatile the market is and without a real measure to guide the valuation of the cryptocurrency, the bitcoin price prediction for 2018 is likely to be continually revised as new information comes to light.
Many experts had the outlook for the coming year pegged somewhere between $7000 and $11000 back in November, but after the incredible leap in value, the price prediction has continued to rise. With some analysts putting the 2018 valuation at around $20000, there’s a real possibility that we could see the price climb even higher — if the recent rapid growth is any indication.
In addition to the “Fear of Missing Out” factor driving the price increase, there are several other recent developments in the world of bitcoin that have added to this major growth. The first, is the payment app Square’s support for bitcoin payments. As a payment system that has quickly grown to a large presence in the retail market, the added ability to support bitcoin transactions has made the practical application of the cryptocurrency a little more apparent to the common person. Additionally, the launch of bitcoin futures from CME group further legitimizes the currency as a worthwhile investment opportunity. The futures move, specifically, will likely greatly increase the currency’s trading volume and decrease volatility. Analyst Ronnie Moas of Standpoint Research thinks that the growth will continue: “An argument can be made that the good news is still not fully reflected in the current price.”
Other analysts and investors aren’t so sure that the volatility of the currency will ever decrease. In an appearance on CNBC’s “Fast Money,” hedge fund manager John Novogratz suggests that the future of the currency is anything but stable. “There will be wild crashes in it because you’re going to get to levels so far ahead of where the technology’s at. It makes investing really, really exciting, but difficult.”
If there’s one thing that’s certain, the bitcoin price prediction for 2018 is certainly still up in the air. With estimates ranging from $5000, to $40000 or more, it’s anyone’s guess as to the path that this currency will take. It’s looking likely, however, that we’ll at least continue to see growth for some time. If you’re not averse to some risk, you may be able to turn a tidy profit with bitcoin in 2018.