Is It the Right Time to Buy Bitcoin in 2018?
Since its inception, Bitcoin remains the most popular cryptocurrency. If you are totally new to the world of cryptocurrency, buy a tiny amount of bitcoin like $100 or less. Something you can afford to lose. If you are planning to invest for long-term investment, then it is definitely the right time to buy bitcoin in 2018.
Disclaimer: This content is provided as general information only and should not be taken as investment advice. The opinions expressed in this article are the personal opinions of the author at the time of publication.
Is It the Right Time to Buy Bitcoin in 2018?
Bitcoin is a very volatile currency, but the trend lately is undeniably upward, and that trend will likely continue over the near term as adoption increases and (more importantly) as people in countries with less stable economies find that they can protect their assets by investing in bitcoin.
Early 2017, we have published an article whether or not people should buy bitcoin. At that time of writing, Bitcoin was priced at $1,500 and we thought it was going to continue to rise. Look at the value of Bitcoin today, the value has doubled at the end of 2017 and it is now hovering at $10,000 mark.
Bitcoin is unstoppable
as we mentioned before, Bitcoin is unstoppable. The notion of unstoppable computer systems should be familiar already. BitTorrent, the file-sharing protocol invented by Bram Cohen, has been around since 2001 and is still very much alive despite concerted, international, billion-dollar efforts to destroy it. The latest Star Wars movie can still, right now, be pulled through BitTorrent in minutes straight to your laptop.
BitTorrent was the very first Decentralized Application (DAP), or a community of actors generating value for each other across the internet. To truly stop BitTorrent, you’d have to shut down every single computer in every home in every country across the planet.
Bitcoin works in the same way as BitTorrent, it is unstoppable.
Bitcoin is limited
In a centralized economy, currency is issued by a central bank at a rate that is supposed to match the growth of the number of goods that are exchanged so that these goods can be traded with stable prices.
As for Bitcoin, it is limited to 21 million bitcoins in existence. The limitation in the number of bitcoins is by design and determined in the protocol code. It is a desirable feature because it makes the money supply predictable and independent of human decisions like it happens with fiat money.
At the most basic physical level, gold generally doesn’t tarnish and doesn’t degrade over time. Gold also has some valuable uses in electronics and other industries. Further, supply is limited and demand is high, largely because people quite simply love the shine of gold. Add it all up and gold is a near perfect safe haven asset.
Bitcoin, for many of the same reasons, stands a good chance of becoming a top choice for investors to park their money in when the global economy is hit by a bout of turbulence. This isn’t pure speculation either: when Greece was on the verge of collapse and the Eurozone was at risk, Bitcoin’s price spiked from less than $250 dollars to over $300 dollars within the course of a month.
Properties like gold and bitcoin rise up as per Metcalfe’s Law which states that the value of a telecommunications network is proportional to the square of the number of connected users of the system (n2). So we can hope cryptocurrenciesto expand as their users grow.
McAfee first predicted that the Bitcoin price would reach $500,000 within three years from its then-level of $1,800. He later doubled down on that prediction in December, claiming that Bitcoin would reach $1 million during the same time frame.
Marc van der Chijs is a Dutch millionaire and crypto entrepreneur who originally made his fortune by founding a video company Alibaba bought for $4 billion. Last summer, Van der Chijs predicted that this year the bitcoin would go to the USD $10,000. That has already happened, so Everts wanted a new prediction. And in 2021, a bitcoin will be worth about $150,000. “I think that the bitcoin can eventually go to the millions of dollars when it becomes a means of payment,” says Van der Chijs.
Bitcoin has advantages over other digital currencies
When you look at the list of cryptocurrencies that are currently available in the market right now, it is a long list of them. Some say Ethereum and Ripple to surpass Bitcoin in term of its market capitalization. If they are going to surpass the market cap, that doesn’t really mean anything.
The trading of Bitcoin is very simple. Buying requires a credit or debit or Paypal or a bank account. It is that simple. These are facilitating platforms that allow for easily buying Bitcoins such as Bitquick, Blockchain etc. Transferring these Bitcoins to other users is also easy. But care has to be given during such transfer. This is because as highlighted in the succeeding reason the transfer is irreversible.
Bitcoin has gained too much popularity and there is no comparison with other digital currencies. That is why the difference between the value of a Bitcoin and any other currency is very high. A major difference that has given Bitcoin an edge over all other digital currencies is the fact that Bitcoin is decentralized (e.g. Ripple is centralized).
There is no agency or government controlling Bitcoins. All other digital currencies are associated with some owner or group. Decentralization of Bitcoins makes possessors of Bitcoins feel safe and sound. They don’t have to be dependent on any third party or agency while transferring their Bitcoins. Nor do they have to pay large transaction fees. They are also protected against Bank Insolvency.
It is because of decentralization of Bitcoin, that no country can say it is their currency, no matter where the Bitcoins have been mined. As such Bitcoin is called global currency since it doesn’t belong to any one country. So if you invest in Bitcoins, you are not investing in any foreign currency.
In our opinion, bitcoin will again hit the $20,000 mark and even higher. We predict bitcoin will probably reach $25,000 by end of 2018.