To say that 2017 was a solid year for bitcoin would be an understatement. The digital currency experienced jumps that would make Superman jealous, rising approximately 1600 percent in just a 12-month period. 2017 hasn’t been a solid year for bitcoin – it’s been revolutionary. But where do analysts say bitcoin will stand in 2018?
Many are eager to know if the new year stands to be another powerhouse run for the crypto arena, or if bitcoin is headed straight for Loser-ville. Despite what we’ve witnessed so far, doubt still lingers in the air.
Bitsonline‘s resident technical analyst Ramiro Burgos has examined the trading data and predicted it’ll go to either $50,000 — or $6,500. That’s a pretty wide margin, and bitcoin is so volatile that both could be true. So what do others think?
Up or Down – What’ll It Be?
The sentiment surrounding bitcoin’s future appears relatively mixed. Some argue that while the currency will continue to shoot north and surpass our expectations, a few nasty detours will occur along the way, and bitcoin could drop exponentially before it reaches another high.
Cryptocurrency entrepreneur Julian Hosp told CNBC he feels bitcoin is likely to continue experiencing solid growth in the next 12 months, but not without some disappointing (and major) bumps:
“I think we’re going to see bitcoin hitting the $60,000 mark, but I also think we’re going to see bitcoin hitting the $5,000 mark… The question is, ‘Which one is it going to hit first?’”
Analysts Predict a Little Spring Crypto Cleaning
As co-founder and president of TenX (a company that specializes in simplifying cryptocurrency spending), Hosp said he’s certain (although he’s unsure when) that bitcoin is headed towards a long cliff. He compared the current bitcoin hype to the dotcom bubble of the 90s, and cautioned a “crypto winter” may be nearer than we think.
“I don’t think it’s going to come in the next couple of months,” he stated calmly.
“But I think if we look down one to two years, there is definitely going to be a big compression in the market. I don’t think it’s going to be a big bubble that’s just going to burst, and everyone is going to lose their money, but I think it’s going to be that all the coins and all the assets with very little use or value are going to get sorted out. The money is going to flow into those assets in this cryptocurrency space that really deliver value, have new technology, and are being used by people.”
Hosp presented a scenario of “cleaning house,” in which the lesser known, likely smaller cryptocurrencies that garner less use and fewer accolades than entities like bitcoin and ether could be phased out. This may have a temporary, yet downward effect on the market, though he predicted a rebound is likely to occur soon after.
Some Major Slumps on the Way?
DataTrek founder and analyst Nick Colas, on the other hand, offered crypto-fans a stronger case of the old gloom-and-doom. He said bitcoin could trade for anywhere between $22K and $6.5K in 2018, and would either rise exponentially or incur a massive slip and lose an insurmountable portion of its value.
He also predicts at least four major market crashes in the coming year.
“Bitcoin and cryptocurrency are hard to value, and their economic utility relies on use cases that are not yet built,” he explained. “Of course, the volatility we’ve seen will continue. At the average of the high and low, we get to $14,035, and the only way it goes substantially higher is if/when someone comes up with a large-scale business that uses bitcoin.”
Bitcoin May Fall and Never Recover, Says Gold Bug
Other analysts predicted that in 2018, bitcoin will be seen for what it is – a shady investment. Veteran gold analyst Michael Dudas, for example, called bitcoin “dicey,” and feels it could “burn a lot of investors” on account of their lack of knowledge, the amount of money going into cryptocurrency, and non-existent regulation.
“It’s a very speculative investment,” he stated. “There’s still a lot of misunderstanding or a lot of education required about the supply of these different cryptocurrencies, [and] how it’s going to play out over the longer term.”
Bitcoin gets a mixed reception in the precious metals community — some see it as consistent with their non-fiat “sound-money” principles while others see it as a threat to their chosen assets’ value. Dudas, at least, feels bitcoin could fall and never pick itself back up.
Will 2018 deliver stronger bitcoin results than 2017, or will we see some dramatic slumps over the coming months? Post your comments below.
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