2018 is going to be a big year for the Cryptocurrency market. When everyone is talking about the future possibilities of existing Cryptocurrency like Bitcoin and Ethereum, plenty of new Cryptocurrencies is coming in the market with a promise of giving returns like there ancestor.
This mad run or as it is popular nowadays “The Cryptocurrency Bubble” is going to be a major attraction in 2018 under two major questions where the first question will be the Cryptocurrency bubble will it keep soaring or it will pop soon? And the second is where everyone is trying to make a new Cryptocurrency will we all end up with having our personal Cryptocurrency in the end?
In this blog, we will discuss and try to get an answer to these two questions on Cryptocurrency.
(1) Cryptocurrency bubbles will it keep soaring or it will pop soon?
Everything about the Bitcoin is fascinating the working mechanism, endless future possibility, ever-rising price, and the expectation that it will never lose its value, that is the thought process of every Bitcoin enthusiastic out there. Unlike other investors majority of Bitcoin investors do not want to sell there bitcoin’s even after the recent strong Bull Run with the expectation that the price of bitcoin will continue to rise in coming future as well and that is the thought process with is contributing in the price movement of bitcoin. As every investor wants to buy Bitcoin and hold it for very long time and they do not want to book profits in it so the demand of bitcoin continues to rise which in turn push the price further up.
As we all know that to get gold you need to mine it and extract it from the ground just the same way people mine bitcoin, however, it is not like mining gold it is a digital process of creating bitcoin’s which is done by very capable and powerful computers. And as we can see in recent months the demand of bitcoin is rising every day and the miners are still less that creates a higher demand to supply ratio which creates an environment supporting and working for the rising price of bitcoin and the price of bitcoin. However, we should also consider that with time the number of Miners is going to increase as everybody explores the possibility of bitcoin more and more people will get involved in the mining process which will support the supply and that can result in a slowdown in the price shrug of bitcoin.
This will somewhere answers the first question that the very basic of Cryptocurrency is supportive to call it a safe heaven as it is also mined like gold and the mechanism of mining make it a currency which happens to be limited in the world which promotes investors to get it as soon as possible before we dig it out entirely and that creates a difference between the demand and supply and the nature of Cryptocurrency and its investors are expected to push the price of Cryptocurrency further up. However the ever-changing financial market scenario and the increase in the awareness about Cryptocurrency amongst investors are going to play a very important role in coming future as more and more people starts to mine Cryptocurrency and with the debuted of a lot of new Cryptocurrency in the market the excitement in the investors are expected to cool down and that will start an era of correction for Cryptocurrency.
(2) Where everyone is trying to make a new Cryptocurrency will we all end up with having our personal Cryptocurrency in the end?
In the current market, the Initial Coin Offerings or ‘ICOs’ are becoming a very familiar word for investors, as we can always find a new Initial Coin Offerings around the corner almost every day. An Initial Coin Offerings is similar to the Initial Public Offerings, In Initial Coin Offerings a new Cryptocurrency got introduced to the world and if we talk about the recent Cryptocurrency boom it had raised he Initial Coin Offerings value near to four billion dollars so far.
And now every tech enthusiastic how to have a good understanding of Cryptocurrency is thinking of making a new blockchain and introduce an Initial Coin Offerings to the market and that is just a beginning of a big mess of Cryptocurrency boom. And the day is not far where all the tech giants and e-commerce companies will start to introduce their own Cryptocurrency in the market. And this is going to create a lot of trouble for the current financial system of the world.
The year 2018 is going to be a major turnaround for the Cryptocurrency market, as not only the talk of the town Bitcoin is going to be in limelight but there are many other Cryptocurrencies which are ready to take off. However, every investor should understand the fact that the Cryptocurrency market is still very immature and there is a lot of changes and upgrades are required in this market before we can call it a full working replacement of hard cash. There is still a long way to go for Cryptocurrency and every investment in this market carries a high level of risk and return potential.
We advise our clients to park their excess savings which they never intended to use in a relatively mature blockchain for a long-term investment purpose to get an exposure in Cryptocurrency market with proper money management.