The cryptocurrency technology has tasted unbelievable successes over the years accruing a total market cap of $733 billion. 2017 was the same in which bitcoin alone boasted a return of more than 1200% since the start of the year. The year was full of surprises that made the world of bitcoin raise its total market cap to $224.9 billion.
A lot of cryptocurrency enthusiasts and investors got amped up for all the astounding opportunities in store for them in this industry. Anybody who owned Bitcoin and held it over the last year hit a jackpot. Tom Lee, who is the co-founder and head of research at Fundstrat Global Advisors, predicts that bitcoin could hit $20,000 USD by May, 2018 and there could be an even bigger move by the end of the year.
In 2018 we will witness a “regulation war” as governments will attempt to try to regulate the currently decentralized product. It will be an uphill battle for them to control the crypto currency and wallets as the crypo’s were set up specifically to avoid regulation and to provide anonymity.
Storing of Value
With the current glut of Bitcoin transfer transactions, most exchanges and digital wallets are having a very difficult time and significant delays in transferring Bitcoin blocks. The result of this is when traffic increases transfer fees increase as well. This makes it impractical to use Bitcoin as a transactional tool for low volume transfers. Until the transfer cost issue is resolved, Bitcoin’s and other crypto currency seems to be more of a commodity that is used to build and store value (like gold) as investors use it more for speculation then for day-to-day purchases of goods and service.
Bitcoin may no longer be the number one cryptocurrency by the end of 2018. The major problem that Bitcoin faces is the high financial transaction costs and unless this issue is resolved, it offers others an edge over it. That’s why there is a quick rise of Bitcoin Cash as it is less expensive and because of this, it should become a reliable investment in 2018.
Ripple Has a Huge Potential
Ripple has the potential to become the number one cryptocurrency in 2018 and has already surpassed Ethereum’s Market Cap once this year. If the present cryptocurrency market capitalization is anything to go by, Bitcoin’s lead will be challenged. With hedge funds and banks showing huge interest in the cryptocurrency market, Ripple and Ethereum are the two digital currencies they’re likely to choose. That could without any doubt transform the cryptocurrency sector.
Overall, 2017 was a spectacular year for blockchain and cryptocurrency – over $3 billion was raised by means of traditional investments and initial coin offerings. Countless new organizations were founded, and cryptocurrency prices took off, forming a whole new asset class. As 2018 begins, further developments, government activities and more players will be getting involved. It is exciting to see where this will lead and how much money traders will make.