Did you know that 16% of Americans say that they have invested in, traded, or used bitcoin?
You’re probably wondering what the future of Bitcoin is. Cryptocurrencies have been on a wild ride over the past year or so, with Bitcoin reaching record highs before crashing down to earth.
But don’t worry. Keep reading because, in this article, we explore some bitcoin predictions and where this digital currency may be headed next. Whether you’re a cryptocurrency investor or just curious about this hot topic, we’ve got you covered.
Regulation
One of the biggest concerns for bitcoin investors is regulatory uncertainty. In particular, there’s the worry that governments could crack down on cryptocurrency trading and exchanges, making it harder to buy and sell the asset.
This is already starting to happen in some countries. China, for example, has moved to shutter bitcoin exchanges and ban initial coin offerings (ICOs), a new fundraising method that has become popular among blockchain startups.
Other countries are taking a more hands-off approach. The U.S. Securities and Exchange Commission (SEC) has said that it’s looking closely at ICOs but has yet to issue any major rules or regulations.
The regulatory environment is likely to be one of the biggest factors influencing bitcoin’s price in 2018. If more countries move to crack down on trading and exchanges, it could put downward pressure on the price. Conversely, a more permissive regulatory environment could help boost the price.
Institutional Investment
Another key factor to watch is the growing interest from institutional investors.
Despite the recent sell-off, major financial institutions have been showing increasing interest in bitcoin and other digital currencies. Goldman Sachs (GS) is reportedly considering setting up a trading desk for cryptocurrencies, while the New York Stock Exchange is launching a bitcoin futures product.
If more institutional investors get involved in the market, it could help provide some stability and increase demand for bitcoin, which would put upward pressure on the price.
Mainstream Adoption
Mainstream adoption is another important trend to watch. While bitcoin has been around for more than eight years, it’s still not widely used as a form of payment. That could start to change in 2018, as several businesses have announced plans to accept bitcoin payments.
Square (SQ), for example, has started letting users of its Cash app buy and sell bitcoin. And Overstock.com (OSTK) has said that it will begin accepting bitcoin payments later this year.
As more businesses start accepting bitcoin, it could become more mainstream and be used more frequently as a form of payment, which would help boost its price.
Technical Factors
Several technical factors could influence the direction of bitcoin’s price in 2018. One is the so-called “halving,” which is slated to take place in mid-May.
The halving is a scheduled event that cuts in half the number of new bitcoins generated each day. This has the effect of reducing the supply of new bitcoins and could put upward pressure on the price.
Another technical factor to watch is the ” SegWit2x” hard fork, which is scheduled for late February. If it goes ahead as planned, it could result in two separate bitcoin blockchains and two separate digital currencies. This could create confusion and chaos in the market, which could lead to a sell-off and put downward pressure on prices.
Geopolitical Factors
Several geopolitical factors could have an impact on bitcoin’s price in 2018. One is the ongoing debate over whether or not to allow cryptocurrency trading in South Korea.
The country is one of the world’s largest markets for digital currencies, and any major changes could have a big impact on prices. Another factor to watch is the situation in Venezuela.
The country is dealing with an economic crisis, and its currency, the bolivar, is nearly worthless. This has led some Venezuelans to turn to bitcoin as a way to store their money and make purchases.
If more countries experience economic turmoil, it could lead to increased demand for bitcoin as a safe-haven asset, which would put upward pressure on prices.
The “Flippening”
Another factor to watch is the so-called “flippening.” This is the possibility that Ethereum could surpass bitcoin as the world’s largest cryptocurrency by market capitalization.
Ethereum has already seen tremendous growth in 2017, and if that continues in 2018, it could overtake bitcoin. This would be a major milestone for the digital currency and could lead to even more mainstream adoption and higher prices.
The Launch of New Exchanges
Finally, another factor to watch is the launch of new cryptocurrency exchanges. While there are already many large and well-established exchanges, such as Coinbase and Bitfinex, there are still many small and niche exchanges.
If more people start using these smaller exchanges, it could lead to more liquidity in the market and put upward pressure on prices.
These are just a few of the analysis factors that could influence bitcoin’s price in 2018. With so much uncertainty, it’s impossible to say definitively where the digital currency will head next. However, these factors could give us some clues as to which direction prices might move.
Want to Learn More About These Bitcoin Predictions?
So, what’s next for Bitcoin? No one can say for sure. Some experts are predicting a huge rebound, while others think it will slowly fade into obscurity.
What we do know is that cryptocurrency is here to stay, and digital currencies like Bitcoin will only become more prevalent in our increasingly online world.
Check out our blog for more articles like this – we’ll keep you up-to-date on all the latest bitcoin predictions, news, and trends about where is bitcoin headed and answers to the question, “will bitcoin crash?”.