Last year, 2017 was a bullish year for Bitcoin that ended in frenzy of unimaginable hype. By mid-December, Bitcoin was trading at $19,600. This was right before facing a violent correction and stabilizing around $5,900 in February 2018. A correction that not only broke spirits but also comforted those who believe in an apocalyptic future for Bitcoin. Still, the market seems to have survived the crash and seems to be showing some signs of a promising year.
So, what can we expect to see happen in 2018? A bear market like back in 2014 when Bitcoin started the year at $900, only to finish at $300 by New Year’s Eve? Or, another 2017, filled with buying opportunity and ending the year at $50,000?
Most industry experts believe that Bitcoin will get back on track and will follow a steady upward trend throughout 2018. But, this belief is far from unanimous in the world of crypto-finance. Others expect to see Bitcoin take another crash soon, dropping its value to less than $5,900.
The Optimistic Predictions
The deflationist nature of Bitcoin, in the face of an ever-increasing demand for it, should, hypothetically, rarify it and further increase its value.
Currently, this are no precise statistics on the exact number of Bitcoins that are available on the market. However, of a total 21 million Bitcoins, 16.74 million have already been issued and between 2.77 and 3.79 million have been lost to simple computing errors, thefts or other reasons. In addition, every four years, the number of minable Bitcoins is cut in half, which further increases their scarcity by reducing the supply.
David Drake on the Evolution of Bitcoin in 2018
According to David Drake, founder of LDJ Capital, the price of Bitcoin should continue to rise in 2018 until it reaches $20,000. Drake’s prediction is also based on the laws of supply and demand. He states, “There is a limit to the number of Bitcoins, however, at the same time, the demand continues to increase. When we see this sort of correlation, prices increase.”
After the major correction in February, this expert has optimistic visions for 2018.
Tom Lee on Bitcoin from 2018 to 2022
Tom Lee, the associate director at Fundstrat Global Advisors, recently changed his predictions about Bitcoin. According to Mr. Lee, Bitcoin could reach a $25,000 by the end of the year and $100,000 by the year 2022. “In the long run, Bitcoin has a positive outlook.”
To back his claim, Lee created a short-term model based on Metcalfe’s law, which shows that the value of a network is directly proportionate to the number of its users squared. In other words, Bitcoin’s value should continue to grow exponentially if the number of users and investors continues to increase. So, even though Lee hasn’t ruled out the possibility of more short-term corrections, he firmly believes in a positive future for Bitcoin.
Michael Novogratz on the Always-Profitable Bitcoin
As an investment fund manager, Michael Novogratz in considered a Bitcoin enthusiast by his peers. During an interview with CNBC, Novogratz announced that he believes Bitcoin will reach the $40,000 mark by the end of 2018. In fact, he believes that Bitcoin’s arrival on the stock markets and its notoriety will be advantageous for it. In the end, Novogratz thinks that Bitcoin will eventually manage to become a real currency.
John McAfee on Eating His Penis
John McAfee, the creator of an anti-virus software that bears his name, strongly holds onto the idea that Bitcoin will reach unimaginable heights. He believes that Bitcoin’s value could easily reach $1 million dollars in the next few years.
In a recent interview, he even swore that he would eat his own penis if his prediction turns out to be wrong. McAfee believes that Bitcoin will only cause more excitement in the free world because of its decentralized network and the fact that it isn’t supported by any government.
According to McAfee, Bitcoin represents an ideal financial asset to escape from restrictions that have been imposed by governments and traditional financial institutions. While facing an unstable global government, Bitcoin could act as a safe-haven in the event of a financial crisis. In fact, we have seen this in recent weeks when the stock market fell into a downward trend, Bitcoin’s value took on an upward trend.
Moreover, experts are predicting the fall of the US dollar and another financial crisis in the USA, which could, in turn, impact the global economy.
Previously, the Franc, the dollar, and the sterling pound were all supported and backed by gold. But, now, central banks print money based solely on the confidence of the people.
Politicians who want to be elected accumulate debt, and then, buy more debt with that debt. In turn, this creates a totally non-viable cycle and is a system that shows very little promise for the future. So, there is hope for Bitcoin and it might even cause the final fall of the dollar.