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What to expect from Bitcoin rate in 2018?



Last year, Bitcoin was remembered for its high volatility. Sharp jumps of the cryptocurrency rate cause disputes among experts and it become difficult to make further forecast of its development. There are two possible scenarios.



16.Feb.18 11:35 AM
By Daria Zaytseva
Photo Toinnov.com

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What to expect from Bitcoin rate in 2018?

During last year, bitcoin rate increased from $940 to $20,000 (1400%), and the market capitalization reached $700 billion. Two factors contributed to this rapid growth: the emergence of ICO's growing interest in cryptocurrency. People have been looking long for a tool that would become an alternative to banks due to their anonymity and the ability to control the movement of funds without the involvement of a third party. However, such a seemingly promising and convenient tool has caused a lot of disputes among experts. The cryptocurrency has challenged the existing banking system, but at the same time, it has become a target for hackers and scammers. Most of all from this novice investor suffers, because they are frightened by the sharp jumps of unsecured cryptocurrency. Nevertheless, it is difficult to predict the future behavior of bitcoin, even for well-known analysts. There are several possible scenarios of the future forecast of bitcoin rate in 2018.

Optimistic forecast

According to this scenario, bitcoin would continue to growth and within several years may reach $1 million per coin, and capitalization - would be over $1 trillion. Expertsí estimates are different regarding the possible cost of bitcoin, because in 2017, even the most daring forecasts were justified in the shortest time. Because of this, Bitcoin is compared to gold. In early 2018, the cost of bitcoin has begun to grow again and stopped at the level of $15, 000. Meanwhile, the most minimal forecast is $50, 000. Some experts believe that after reaching this mark, bitcoin would decline again. However, large companies are ready not only to invest in bitcoin, but to support its development. The founder of PayPal payment system Peter Thiel, who considers bitcoin to be undervalued, has invested about $20 billion in the cryptocurrency. In addition, the founder of the social network Facebock is planning to implement the cryptocurrency. And this trend will continue.

Pessimistic forecast

The main pessimistic forecast for bitcoin in 2018 - the rate of the cryptocurrency would fall down to the level of $ 5,000 per coin and investors would switch to more traditional instruments such as stocks and gold. Experts rely on several arguments in their negative forecasts. The main argument of the pessimists is the anonymity of bitcoin, because of which the cryptocurrency has become a tidbit for fraudsters and speculators. According to this reason, the cryptocurrency was banned in a number of states, and the Egyptian mufti stated that the cryptocurrency was contrary to Muslim principles. That is why the cryptocurrency is called a "financial bubble", which should burst.

Current situation

At the beginning of the year, bitcoin rate has begun to grow. Having reached the mark of $15, 000, the rate was stabilized. At the same time, quotations of altcoin have begun to grow. So Ethereum first reached $1,000 dollars for a coin. In 2018, we can expect that the crypto market will grow, but the number of altcoin would decrease, as regulators made the rules stricter. The European Union has already worked on a project that prohibits anonymous cryptocurrency transactions and is planning to create a database of bitcoin users. According to forecasts, the bill will come into force in 2019.




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