Bitcoin is predicted to break more ground this year due to the sheer number of people that are getting behind the cryptocurrency. The global support for the digital fund’s blockchain technology, as well as the high demand for mining Bitcoin, will lead to more investors wanting to get exposure to the cryptocurrency in one form or another.
Bitcoin is now so popular that even central banks around the world can no longer ignore the rise of cryptocurrencies. Central banks are starting to make investments in crypto, showing that they are finally beginning to accept it as a legitimate financial market.
With cryptocurrencies predicted to continue to rise in stature, below are some predictions by financial experts on how Bitcoin may evolve in the coming years.
Bitcoin may become another safe haven asset like gold
Kay Van-Petersen made a bold claim back in 2016 that Bitcoin would reach $2,000. Not a lot of investors believed him until Bitcoin prices soared and even surpassed Van-Petersen’s prediction in 2017. Now, he claims that Bitcoin could reach $100,000 in 2018, which is the equivalent of 1/5 of a gold bar. If Bitcoin’s prices soar that much, it would give supporters a solid argument that the cryptocurrency could be a new safe haven.
The cryptocurrency will open other investment potentials
Finance writer Noah Jessop predicts that there will soon be a commodity market for everything digital. The Chicago Mercantile Exchange (CME) last year launched it’s very own Bitcoin futures contracts, making Jessop’s future prediction for the cryptocurrency valid.
At around the same time that the futures contracts were released, Bitcoin spreads were born, which allowed investors to track the price movements of Bitcoin without holding actual cryptocurrencies. Nadex states that Bitcoin spreads allow traders to hold short-term positions on Bitcoin, minimizing their risks of losing a lot of money. With the birth of two new trading platforms in the form of futures and spreads, and Bitcoin’s popularity skyrocketing, more investment opportunities that tap into the cryptocurrency’s potential will most likely materialize in the future.
It would lead to the implementation of fiat cryptocurrencies
In an article by the Express, Blockchain guru and co-founder of Blockchain research institute Don Tapscott suggests that he expects countries like Switzerland, Singapore, Japan, South Korea, Estonia, and the UK to implement fiat cryptocurrencies in the future. Cryptocurrency works just like fiat money in the sense that the latter is not backed by anything physical like gold and silver. With governments around the world slowly regulating Bitcoin exchanges, experts like Tapscott believe that it’s only a matter of time before central banks release their very own fiat cryptocurrencies.
Bitcoin will help people have better ownership of their data
In the same article by the Express, Tapscott also believes that people would be able to manage their own data better by using Bitcoin’s blockchain technology. In the future, the investment guru believes that people will use blockchain in creating their own digital blockbox.
“In 2018, keep an eye on technology companies like uPort from ConsenSys, Civic, or Sovrin, to provide individuals with authority and autonomy over their identity,” Tapscott said.
Bitcoin will become the main currency of struggling countries
Venezuela is currently experiencing hyperinflation, rendering its currency almost useless. Tech investor and stock picker James Altucher predicts that countries like Venezuela will soon have a mass adoption of Bitcoin. If this happens, the cryptocurrency’s prices may skyrocket to $50,000, according to Altucher.