A Glance at previous year – Bitcoin in 2017
In order to understand price behavior of Bitcoin in 2018, it is important to first see how the prices moved during the year 2017. The year 2017 has been perhaps one of the most important year in the history of Bitcoin. This statement might prove false in any future year because we are still understanding Bitcoin and cant imagine its potential to rise. The tsunamic rise that we saw last year was perhaps just an introduction to potential of Bitcoin. Just see the data of last year…..almost hard to believe!
Date Price of Bitcoin in USD
Is there any asset or commodity on earth which could have escalated even half of what Bitcoin achieved?
Neither there is nor there can be!!
Now whats in store for Bitcoin in 2018 ?
The natural tendency of graph would show a decline after such a steep rise in Bitcoin Price during 2017. Hence we have seen a correction in the first quarter of 2018. This correction made many say Bitcoin was a bubble and it has bursted. Many say it will now end while many positive believers of Bitcoins forecasted Bitcoin to reach $20,000 by the end of 2018.
I am not an Astrologer, nor do I want to earn fame by just writing a big forecast figure and then when prices goes up, may I shout at top of my voice – See I forecasted it! I am not God.
I am firm believer in Bitcoin potential. I trust Blockchain technology. I have faith in the software and I have understood principles underlying Bitcoin’s tremendous potential. That’s why I know whatsoever may happen to world economy, Bitcoin will bounce back because……
• The supply is limited
• World has gradually understood use of bitcoins
• Awareness is increasing day by day resulting in more and more transactions per day.
• There is a big rich population which do not want their wealth to be dependent on the government of their country. They prefer to store their value in bitcoins rather than storing in banks.
• Next halving is in 2020 which will further decrease rate of supply whereas use of bitcoin by 2020 will increase manifold.
• Bitcoin transactions are far behind credit card transactions and until they become equally common, the potential remains.
Bitcoin in 2018 – What can be expected by end of 2018
Because of above reasons, Bitcoin in 2018 will move upward but there are following hindrances :
• Transaction time or time required for getting confirmations is still very high as compared to transaction time by a credit or debit card.
• Safety of Bitcoins has been a major concern. As the awareness of Bitcoin is increasing, hacking of wallets and even exchanges have been more common.
• The subject of Bitcoin is too technical for a layman. Untill and unless a person understands Bitcoin technically it becomes difficult for him to understand why prices are so volatile, why transaction time is so high and how to safeguard their bitcoins.
• Government of many countries including India is discouraging use of Bitcoins since they understand very well that Bitcoin is a parallel financial system over which they have no control. Government of any country always want to have full control over their finances in order to keep economy in control.
• Some countries like Japan have made Bitcoin legal since they have understood very well that they cant stop use of Bitcoins. They can only make it difficult for their people to use Bitcoins by banning survival of bitcoin exchanges in their country. This way, people try to hide their transactions and make use of global exchanges. Now Bitcoin is legal in Japan, Australia and many European countries. At the same time India, China have been trying to discourage Bitcoin transactions in their country. China tried to ban all Chinese Bitcoin Exchanges while India have been discouraging but have not banned any exchange. Zebpay and Unocoin are popular Bitcoin Exchange still running in India. They ask for KYC documents before executing any Buy or Sell transaction.
Overall I would say that Bitcoin is a Golden Opportunity to avail. It has potential to grow exponentially. Keep buying bitcoins as and when there is a correction and remain positive. It will definitely pay. Store Bitcoins as long as you can. Understand how to store them safely.