The future of cryptocurrencies is uncertain. We can’t tell what the future will hold for cryptocurrencies but we can, at the least, guess what direction the crypto industry might take- in a year’s time, in 5 years time and in a decade’s time.
The first move will be the adoption of blockchain technology. This will inspire institutional investments that will open up a gold mine where values will rise and cryptocurrency will be worth a lot of money. What this means is that cryptocurrencies won’t become a dead investment and, eventually, it will become the major adoptable.
Rise and Fall of Bitcoin
The cost of Bitcoin went up over $20,000 in December 2017, which aroused the interest of those with no previous interest in cryptocurrency. A great future was announced for virtual coins, where many predicted positive outcomes for the Bitcoin exchange rate in 2018. Assurances were made over the future increase in the value of Bitcoin, leading to an increase in mining and the recognition of cryptocurrency in different countries.
However, at the beginning of 2018, something unforeseen happened where the rate of Bitcoin sharply dropped. The beginning of February saw the value of Bitcoin falling below $7,000.
The price of virtual coins was hit by a bearish trend, in spite of significant surges. This trend alarmed both potential and current investors. The price leveled out by mid-summer and in July 2018, a bullish trend was finally observed.
Short-term future of Cryptocurrencies
Cryptocurrencies are deemed to become a gold mine in the next few years where we will see high values being sustained for quite some time, though the picture is much bigger than this.
The year 2019 and beyond will be the era for adoption. The value of currencies will stabilize and they will no longer prove to be good investments. This, in turn, could open up a new market for investment opportunities by splitting the markets in two – the adopted mainstream cryptos and future investments kick-starting the complete cycle all over again.
A few events are taking place in terms of setting up cryptocurrencies for long-term growth, as well as highlighting the position of the industry by the end of the year; for investors who are critical.
Whilst still being a trend in 2018, the digital currency market went from being worth under $20 billion to well over $500 billion in just two years. For investors who are skeptical, events are taking place that set up cryptocurrencies for long-term growth and highlight where the industry will be by the end of the year.
Acceptance of Cryptocurrency
Many governments are tipping in the direction of Blockchain technology, despite being uneasy about digital currencies themselves.
China’s president, Xi Jinping, announced that blockchain technology as being a ‘breakthrough’ in the 21st century. The country is considering Blockchain as a priority alongside AI, with the Internet of Things, artificial intelligence and mobile communication.
Blockchain is picking up momentum in other Asian countries, as well. The technology is being used by South Korea to track packages. In Japan, a massive gaming company called ‘Gumi’ launched a $30 million global blockchain investment fund.
Blockchain and Bitcoin 2019
Blockchain technology is gearing up to end strong in 2018, based on increased adoption and more tools available at users’ discretion. There is a marked increase in interest in the Blockchain space. The following are likely to take place in the future:
- In the United States, security tokens will become more common with companies opting to use Initial Coin Offerings (ICO) while submitting to regulation. ICOs are faster and more cost-effective than most traditional venture capital methods. A unique opportunity for investors would be security tokens which could allow them to partake in early-stage companies.
- The aspect of more tokens coming onto the fiat-to-crypto exchange seems less like speculation and more of a waiting game.
- The corporate space will see an increased adoption and development of Blockchain technology, which will increase its awareness and facilitate industry growth, as well as the use of blockchain based tokens.
Statistics for adoption rates in 2019
Pantera Capital, in a recent Bitcoin price prediction, confirmed their position as one of the numerous ventures that believe in the future success of cryptocurrency.
The digital asset has an enormous potential to reach $67,500 in 2019.
The CEO of the investment firm, Dan Morehead, rightfully made a similar price prediction in 2013, and projected that the adoption rate of the cryptocurrency would increase sooner or later. This will act as a catalyst for the price surge. Morehead compared today’s Bitcoin to Microsoft in 2013, when investors were skeptical to purchase its shares.
The price of Bitcoin has struggled to bounce back after falling off a near $20,000, to hover around the $6,000 to $7,000 price zone as recorded last on 8 October 2018.
When planning on cryptocurrency investments, Morehead advised investors to consider the bigger picture in the scheme of things. It is always important to invest in more than one asset, according to him, to avoid the repetition of a huge miss out that happened in the 1990s. Many people who invested in Yahoo, missed out on huge investment opportunities when Facebook, Amazon, and Google broke out.
Morehead stated, emphatically, that Bitcoin will end the year with $21,000 and reach $67,500 in 2019. The predicted rise in price can be attributed, in part, to the launch of Bitcoin Future Trading by CME and CBOE, which will cause many organizations to adopt the digital asset.
“The cryptocurrency has already shown consistency by recording a 165% growth rate for the past six years. It’s like buying gold in 1000 B.C. About 99% of the financial wealth has yet to address Bitcoin. When they do, Bitcoin is either going to be worth zero or $5,000”, Morehead said.
This will also make it more favorable for institutional adoption which will, in turn, lead to a surge in price. According to predictions by experts, Bitcoin might bounce back and trade above $20,000 by the end of the year. The co-founder of Fundstrat Global, Tom Lee, predicted that Bitcoin’s value would amount to $25,000 by the end of the year.
Where do you think Bitcoin is headed, in 2019 and subsequent years? Let us know your thoughts in the comments section below.
About Bank Of Hodlers
Bank of Hodlers is building a customer-centric bank on the blockchain, by providing financial services like cryptocurrency-backed loans and cryptocurrency-backed cards.