Current holders of the Bitcoin are going to enter the Christmas season with significantly full pockets, at least as far as their assets are concerned. After all, after months of drastic highs and lows, bitcoins are once again gaining traction in the cryptocurrency market. The value of a bitcoin started going up in October, hitting milestones in November and now, in December, achieving unprecedented heights in value. Here is a look at how the Bitcoin fared all through this year and a take on what Bitcoin prediction for the coming year.
The Bitcoin so far
One bitcoin was going for about $780 dollars in January 2017. Three months in, the cryptocurrency had risen steadily but not considerably in value, going for $900 apiece. Things started getting heated towards the end of the year. After a drastic drop to $.10 per bitcoin, investors got back on board and drove up the price to $6300 in October. By November, the digital currency had crossed the $10,000 threshold but skeptics called for a need to watch the cryptocurrency. After all, its value could go down just as quickly.
A few days after being valued at $10,000, the Bitcoinâ€™s value rose to $12,000, fluctuated a little more by dropping to $8,700 then stabilized at around $11,000. The cryptocurrency is now going at $18,000 apiece.
Expected Cryptocurrency Performance in 2018
Experts in the digital currency field are optimistic about the future of the Bitcoin if the current trend holds. In fact, if factors shift in favor of bitcoins, it might just be the biggest and best investment anyone can make in 2018.
The reason analysts including former JP Morgan strategist Tom Lee are endorsing the bitcoin is that they see 2018 as the year the bitcoin becomes more widely accepted and adopted. Take a moment to think about that. At present, investors are already catching on that buying bitcoin as a speculative asset is beneficial. The 55% increase in transaction volume for bitcoins between 2016 and 2017 is evidence of that.
With more countries following Japanâ€™s lead and making bitcoins an official method of payment, the digital coin is becoming more legitimate and subsequently attractive as an investment. Institutions are coming forward to express an interest in not only availing bitcoins but also pouring funds into developing Bitcoin futures. All in all, the currency is gaining federal and institutional backing, interest from the public and miners to meet the demand. With interest increasing and more individuals and institutions adopting the cryptocurrency in 2018, bitcoins will only become more valuable.
INS Ecosystem co-founder Dmitry Zhulin estimates that a single bitcoin could be worth $30,000 to $40,000 by the end of 2018. According to him, the convenience and easy adoption of the coin will facilitate that. Mike Poutre, CEO of The Crypto Company, estimates that the entire digital currency industry could have a market capitalization of over $5 trillion by 2019, with bitcoins taking up a significant chunk of that market cap. Even Lee, a former Wall Street Journalist, sees a future for bitcoins. He estimates that it will be worth about $55,000 five years from now.
Bitcoins might be a worthy investment after all.