After falling to four digits earlier Wednesday, Bitcoin price rebounded above $11,200 as a lot of (me included) investors bought into the dip.
Well, some called it a ‘’bloodbath’’ and some said it was the end of the crypto bubble. I might agree with the word ‘’bloodbath’’ as it was really painful to see most of the coins dropping 40-70% in one day.
Bitcoin is still down roughly 19% this year to date with crackdowns in South Korea and China, as well as hacks and scam warnings pushing away investors. Breaking news of closing down of Bitconnect was another major player in this crackdown. To be honest, in a long run closing down of Bitconnect isn’t bad news because the exchange was controversial and not reliable. I still think there are way too many exchanges that will follow Bitconnect’s road and it will cause a lot of concerns and doubts in investors. Probably a lot of people will end up losing their investments, but these things happen.
As prices fall, economists automatically start talking about ‘the bubble’ which starts to annoy a lot of people. Daily newspaper The Capital analysts did some kind of research that showed latest price falls suggested the bubble is bursting. Yet they think that even if the bubble does burst it should not have too great an impact on the global economy. Well, I completely disagree with their research but let’s leave it to that.
“We are going through the biggest wealth generation opportunity of the century, and people want to participate,” says Meltem Demirors, director of development at Digital Currency Group.
We all have heard that cybersecurity pioneer John McAfee recently set a $1 million price target for Bitcoin by 2020. While some might think he is delusional, I think price of a Bitcoin will be $50 000 by the end of 2018. Today, only small percentage of world’s investors have discovered this madness of crypto world, but 2018 will be big as cyrptocurrencies and blockchain are getting more coverage daily around the world. If you look around the internet, especially social media, you will find that so many (thousands) people are trying to get in on this, but have difficulties registering or verifying themselves because exchanges are completely overloaded. Kraken.com was down for days for a major update, but new users cannot still verify themselves.
One more thing. Maybe some of us remember this – Kay Van-Petersen, an analyst at Saxo Bank, said in December 2016 that bitcoin would reach $2,000 in 2017, a feat achieved in May. Van-Petersen now says bitcoin will be driven by a larger uptake of institutional investors and futures contracts. He now predicts that Bitcoin could hit $100 000 mark in 2018. My prediction is more realistic, but wouldn’t be too surprised to see bitcoin at $100 000.
One thing is sure, 2018 will be the year of cryptocurrencies and it’s going to be a lot of fun watching all of it changing our world.
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