Bitcoin is the world’s first and most popular cryptocurrency, as well as it’s a payment system. Back in 2017, we’ve witnessed the skyrocketing value rise of Bictoin. People have made large margin profits by investing into bitcoin last year. But this year, unluckily there’s a sudden dip in the crypto market. Here we gonna talk about bitcoin price predictions for this year 2018.
Bitcoin Bubble Crash –
From the end of 2017, most likely December, the values of several popular cryptocurrencies started going down. Bitcoin touched its all time high value of $20,000 last year. But in this year, Bitcoin value has fallen more than 70% when compared to its all time high value. Medias are reporting bitcoin as the “greatest bubble in the history of mankind” or even “Bitcoin bubble is to brust”. While Not only bitcoin, the top 10 cryptocurrencies including Ethereum, Ripple, Bitcoin Cash, Cardano, Stellar, Neo, Litecoin, Eos, Nemhas have also undergoing through a sharp dip.
Currently Investors are in panic due to the high volatility in several cryptocurrencies. Interestingly Botcoin’s price has seen more volatility than any other cryptocurrenices. Though it’s nothing to worry about for long time holders as for cryptocurrencies, it’s normal to fluctuate by 60-70% or even in rare cases by 80-90%. In case you don’t know, before reaching at its peak vlaue, bitcoin has gone though such volatile price dip. Back in 2011, with a 94% price dip, within just five months Bitcoin’s price dropped from $32 to just $2 between mid-june to November.
How and Why Bitcoin Value Rises ?
Before predicting the price of BTC, first of all you’ll need to know how bitcoin’s value increases. The creator of Bitcoin named Satoshi Nakamoto set a limit to the numbers of bitcoin to 21 million that can be produced. Basically mining helps to introduce a new BTC in the system, and with each coin mining, it becomes harder to mine a bitcoin. You can compare the price of bitcoin with Gold market. As the number of available coins are limited, when the demand increases, it pulls up the value of bitcoin. It means when more and more people starts to buy bitcoin at higher prices, it boosts its value that causes the price rise. Similarly when people start to sell off their bitcoins at lower prices than the current market value, it causes the price drop. And this’s why the price of bitcoin keeps fluctuating everyday or even every hour.
Reason Behind Bitcoin’s Price Drop –
So currently the buy orders of bitcoin are low as compared to the previous times, and it’s only because of its price drop. And one of those reasons is Many countries created laws to regulate cryptocurrency. Many countries declared cryptocurrencies as illegal tender, as well as many of them eventually banned it. Earlier Central Bank of Bangladesh banned Bitcoin for lack of “central payment system”, not only this the country also announced a punishment of upto 12 years imprisonment for dealing or trading bitcoin or any other cryptocurrencies. Similarly this year, Reserve Bank of India (RBI) has banned entities from dealing in or with cryptocurrencies. Also other countries like China, Bolivia, Ecuador, Iceland, Sweden, Thailand, Russia Vietnam has banned bitcoin as well as other virtual cyrptocurrencies. But hopefully, western countries like the United States, Canada, Australia United Kingdom welcomed this new technology positively and deliberately working on it legally.
Not only countries, world’s largest social media platforms like Twitter and Facebook almost banned cryptocurrency related advertisements on their platform. That’s one of those reasons of bitcoin’s value crash. Also Google announced that starting from June it will start to wipe out cryptocurrency and ICOs related advertisements. So It’ll surely make the buy orders of bitcoin going down. And again in the panic, worried people will start to sell off their BTC that could again cause an instant price drain. But still there’s is nothing to worry for long time holders. As bitcoin is a decentralized currency, no country or business organizations control it and it’ll again surge through its peak values. The main problem lies for those people who are short time holders. Due to this crypto market price fluctuation they become the main sufferers.
Bitcoin Price Prediction for 2018 –
Jeet Singh, a crytocurrency portfolio manager stated at World Econmoic Times that Bitcoin value would reach as high as $50,000 by the end of 2018. Moreover, with the rise of bitcoin, the Alt coins or bitcoin alternatives will gain their lost values.
Bitcoin to Hit $1 Million by 2020 –
When I predicted Bitcoin at $500,000 by the end of 2020, it used a model that predicted $5,000 at the end of 2017. BTC has accelerated much faster than my model assumptions. I now predict Bircoin at $1 million by the end of 2020. I will still eat my dick if wrong. pic.twitter.com/WVx3E71nyD
— John McAfee (@officialmcafee) November 29, 2017
According to McAfee antivirus founder, John McAfee, bitcoin price will go to the moon as he predicted that Bitcoin would hit $1 million by the year 2020. Before this, He also predicted the price of bitcoin for the last year, and that became true when BTC positively crosses his predicted value of $7000. As on 4 March 2018, price of bitcoin is $6914. If we follow his bitcoin price prediction, Simple maths calculation says Bitcoin would cross the value of $29,000 by this year end with a daily price rise of 0.4840957034310259% to hit his target of $1M.
As per experts, after few years Bitcoin will be the standard for digital cryptocurrencies among all alt coins. The fixed supply of 21 Million coins and its market capitalization will play the lead role. And 2018 could the one of the best year for Bitcoin or cryptocurrency holders. But keep this in mind, if Bitcoin price rises then it will fall again in future on one fine day.