Bitcoin prognosis 2018 – what can be expected
Bitcoin prognosis 2018 – After the peaks in Bitcoin values during 2017, several investors and fans of the cryptocurrency are wondering how it will continue. In December last year, the coin price reached a new peak, only foreseen by some of the investor base.
Nonetheless, the world was not astonished when the value of Bitcoin cracked the $20,000 mark for the first time. However, slight skepticism was mixed with admiration and awe as observers wondered whether the cryptocurrency could continue to prosper.
The question is: can the success story continue during 2018? Will the currency be able to withstand the increased attention and external influences and continue its climb? Forecasts for 2018 vary.
Bitcoin prognosis 2018 – Current Bitcoin value
If we are to make an accurate forecast, we must first consider the current Bitcoin situation. During 2017, the currency was extremely volatile, despite its high value. Different factors influenced and will continue to affect the value of the cryptocurrency.
There may be a sudden fall or even a crash. It is not for nothing that experts remark that investing in Bitcoins is not for the faint of heart.
Bitcoin prognosis 2018: regulation?
To obtain a sound prognosis for 2018, it is necessary to consider the factors that influence the digital money system. Bitcoin rates are dictated solely by supply and demand. These two market forces alone determine whether the price rises or falls and are, therefore, the currency’s vulnerability.
Worldwide, one major obstacle during 2018 is regulation. Banks and governments have come to realize that Bitcoin investors made a lot of money last year. There is a need for action, they say. However, curbing or limiting digital currency trading will make it unattractive.
Numerous investors might well distance themselves or lose interest, depending on the degree of regulation. In such a case, a drop in value is almost inevitable.
Other influences: technical problems
Additionally, technical problems can cause the circle of Bitcoin tags to decrease. Currently, the network is overloaded, which reflects in longer transaction times and higher transaction fees. Consequently, there have been adverse effects on the cryptocurrency performance and its value.
Some experts predict marked falls in Bitcoin rates during 2018, though a total loss of value is unlikely. Many investors still consider the cryptocurrency to be digital gold and are taking advantage of low prices to buy heavily.
Bitcoin prognosis 2018: likely developments
Due to the various influences on Bitcoin, there are several possible scenarios for 2018. The introduction of regulatory frameworks would very likely affect the value of the digital currency.
Eventually, sovereign states could introduce laws or regulations, particularly those that command most influence over purchasing power. If so, it may take a while for the Bitcoin course to recover.
Nonetheless, it would rise again, as there would not be many remaining obstacles. Large-scale regulation could even be helpful, as the price would stabilize after its introduction. It is probable that the currency would then reach new all-time highs and break more records.
Bitcoin reigns supreme
Altcoins do not yet have the potential to assume similar supremacy in the foreseeable future. The Bitcoin remains the most popular digital coin on the market, despite the existence of over two hundred other cryptocurrencies.
Some commentators assert that the majority of the market capitalization is in the hands of super-rich investors. Apparently, the latter group may currently be manipulating price levels to artificially suppress the currency’s value.
These suspicions are, however, unproven. By the end of the year, rates should have stabilized and resumed an upward trend – to the delight of investors!
For diverse reasons, Bitcoin is currently one of the most volatile investments. No banks or nation states have decided on the value of the decentralized cryptocurrency. Demand alone determines whether rates rise or fall.
External factors such as the possibility of regulatory measures may adversely affect market progression in 2018. Towards the end of 2017, governments became well aware of the profits that their citizens can make with Bitcoins. This extra income led to suggestions for control and new laws.
Regulation may dampen Bitcoin performance, but a complete depreciation is unlikely. Once this phase is over, rates will climb again and become attractive to investors. As a prerequisite, however, the cryptocurrency platform will need to remain free of problems.
Technical hitches led to price falls in early 2018, for instance. For investors, therefore, continued calm and robust nerves will be necessary.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.