Before going into detail about the future of cryptocurrencies, let’s make clear their concept.
A cryptocurrency is a digital currency that is used to exchange goods and services through a system of electronic transactions without an intermediary. They incorporate the principle of cryptography to implement a secure, anonymous and decentralized economy.
Cryptocurrencies are marking an increasingly strong trend in the financial markets and currencies of the world, for example, BitCoin, since its creation and success, it generated the appearance of more cryptocurrencies that are making possible for this new financial system to grow.
December was a crazy month for Bitcoin: the price reached an all-time high of $ 19,783.06, then dropped to $ 11,590, and currently, as May 2018, the price is around $9,600.
Experts indicate that the constant rises and falls of Bitcoin will continue to keep its investors under sail throughout 2018. While some financial advisers remain skeptical, it’s hard to ignore the massive amount of money invested in the field. Should you buy or sell cryptocurrencies in 2018?
Here are some predictions for digital currencies:
- Institutional investors will bet big on Cryptocurrencies: Analysts believe that this could happen due to more interest by governments in regulating cryptocurrencies, which could draw more institutional investors in a market currently dominated by retail investors. JP Morgan Chase CEO and infamous crypto-skeptic, Jamie Dimon, recently expressed regret for describing Bitcoin as a fraud. investment juggernaut Goldman Sachs is considering offering a Bitcoin-related investment product. In comments to the The Wall Street Journal, a Goldman spokesman said: “In response to client interest in digital currencies, we are exploring how best to serve them in this space.”
- 2018 is destined to become the year of regulatory reckoning: Bitcoin’s unregulated nature is making cryptocurrency exchanges grounds for illegal activity. In order to protect the interests of investors, as well as put an end to individuals who take advantage of digital funds for the wrong reasons, some governments around the world are now seriously considering regulating cryptocurrencies.
- It will be a volatile ride of ups and downs: Due to regulation of cryptocurrencies in the most important countries in the world, many experts believe that the price of bitcoin will fall in 2018. Some analysts say bitcoin will ultimately rise further is that investors will bet on a payout from more splits in the digital currency. Ari Paul, chief investment officer of cryptocurrency investment firm BlockTower Capital, predicts that bitcoin will trade at both $4,000 and $30,000 at some point in 2018.
We are a long way from the exploitation of blockchain’s full potential, and cryptocurrencies are just beginning their journey into changing economics and finance. What the future holds is unknown but very exciting.
Comments are closed.