January 3rd 2017, Bitcoin exceeded $1000 USD. Most curious investors were too afraid that the Bitcoin bubble would pop and market value of all cryptocurrency would dissipate.
Eleven months after, November 2017, Bitcoin hit another milestone by achieving a market value of $10,000 USD. Everyone that was considering investing at the start of 2017 but were too afraid were now realizing the opportunity that slipped through their fingers. Now, they are again wondering the same about 2018, would they be able to enjoy a year as profitable at 2017.
Market analysis shows us that not only is this sort of rapid growth not surprising, but it has been consistent since 2010.
In 2010, a $100 USD investment would be worth well over $10 million today and that number is continuing to grow. Many are asking, is it still worth it to invest in Bitcoin and will 2018 be the year the Bitcoin bubble finally bursts?
Choose a Side
As with most things, there are two stories to consider here. On one hand is the budding group of investors that have not paid any attention to mainstream predictions and are now are now cryptocurrency millionaires. These include early followers of crypto and now neo-rich Bitcoin millionaires who have already made small fortunes on the famed currency.
On the other is a group that is still convinced Bitcoin is a bubble and are just waiting for it to burst so that they can say to everyone “we told you so!” This group consists of old-school investors that remain attached to tried and tested theories, ignoring the inherent value of Bitcoin. Both sides of the argument have valid reasoning based on their beliefs. However, only one is taking advantage of the opportunity while the other is just preaching the same thing over and over every time the cryptocurrency dips in value.
Forecasts and Expectations
Not only Bitcoin but also the most popular cryptocurrencies are still considered a good investment in 2018. Although there may be bumps in the road and criticism along the whole way. Investment bubbles are based on their demand and will grow in size until that demand has hit its peak. Taking this into consideration, an increasing number are joining the Bitcoin revolution by either implementing ways to adopt the currency or simply buying in.
It is highly unlikely however, that the maximum potential of Bitcoin will be reached in 2018. Most likely Bitcoin will continue to grow through 2018. The question is, at what rate?
Based on the 2017 growth rate and current adoption levels, it is unlikely that Bitcoin will continue to grow at the same pace. Envisaging that market adoption, legislation and other external factors remain consistent. Cryptocurrency investors that are on the pro-side of Bitcoin predict approximately half the growth in 2018 as 2017. If this forecast was to remain accurate, a circa $50,000 USD market value for Bitcoin ought to be reached by the end of 2018.
Bitcoin is highly volatile and these forecasts are just estimates. The most important thing to remember if you are planning to invest is whether you think Bitcoin has reached its market adoption capacity or not. If you think Bitcoin will continue to attract more users in 2018, then investing in Bitcoin is perhaps the best move. However, if you think Bitcoin has reached adoption capacity and there is no valuable use for it then the bubble should burst and you should stay away from Bitcoin investments.
Whatever your opinions for Bitcoin’s performance during 2018, inform yourself on the facts and ask yourself: Is Bitcoin worth the risk for you? Can you handle the pressure of a fluctuating market? Do you think you could get out at the right time in order to make a good profit?
But also remember, only invest based on what you can afford to lose should the worst-case scenario come.