Published on May 24th, 2018 | by Sunit Nandi0
Should You Invest in Digital Currency? Predictions for 2018
Towards the end of 2017, it seemed as if the whole world suddenly wanted to invest in digital currency. In fact, bitcoin ended the year with a value of almost $20,000. It has since dropped significantly again, now only reaching around $10,000, but that is still substantially more than what it was worth at the start of 2017. So should you invest in this type of currency? Let’s take a look at a number of financial predictions for 2018.
1. You Should Invest in Digital Currency Because It Will Become More Widely Accepted
First of all, there seems to be an increasingly large number of institutions that are accepting cryptocurrencies as a form of payment. Because of the high volatility of the coin, which could change dramatically in the matter of minutes, few merchants have accepted it as a form of payment, fearing that they would suffer losses. This seems to be changing significantly as of late, shown, for instance, to the Cboe and CME bitcoin futures that were developed at the end of 2017.
2. The Price of Bitcoin Will Drop Because It Will Become More Regulated
The Securities and Exchange Commission (SEC) is starting to pay attention to cryptocurrencies, which means it is likely that it will soon become more regulated. In fact, some trading has been suspended in companies that made claims in relation to tokens. Because one of the strengths of bitcoin and cryptocurrencies is that it is unregulated and decentralized, an increase in regulations will likely make its value drop. That being said, the SEC only operates on the American market, so what the global impact is likely to be is anybody’s guess.
3. Bitcoin Will Continue to Be Volatile and Wild
Even if the SEC regulates how bitcoin can be used within the regular economy, the cryptocurrency’s strength is that it will always be worth whatever people are willing to pay for it in fiat currency. This is precisely what makes it so volatile. It doesn’t look as if 2018 will be any different and experts predict that it will continue to shoot up and down significantly.
4. Bitcoin Will Not Be the Most Popular Cryptocurrency Forever
Bitcoin was the first cryptocurrency out there and is therefore the best known. It is also currently the market leader. However, it seems as if its growth has started to stagnate and it has had to give up a fair deal of market share to other coins such as Dash, Litecoin, and Ethereum. This makes sense because there is a finite amount of Bitcoin out there and they will eventually all be mined. Hence, people should consider whether other types of cryptocurrencies may be more suitable to them.
5. The First Digital Currency IPO May Be Launched
This is perhaps the most speculative of all predictions, but some believe an IPO (Initial Public Offering) will be made for Coinbase, which is one of the biggest cryptocurrencies in America.