Bitcoin prices are currently under $10,000, with the crypto losing more than 50% of its value in the last 6 weeks or so. However, this is not the time to panic sell your bitcoins. If anything, it’s the best time to buy more. You know why? Because bitcoin will most likely hit $50,000 in 2018 or thereabout.Sounds crazy, right?Well, it won’t be as crazy as its 2017 rise from $1000 to $20,000.There are a number of factors that will most likely push bitcoin to $50,000 and above, and here are some of them.
Something happened a few days ago, but few noticed it. The Dow Jones crashed before rallying back up. But that’s not the issue here. On the day that the Dow collapsed, the price of bitcoin rallied after many red days. Could this be a pointer to the fact that bitcoin is the go-to investment in case of a collapse of the stock markets?Probably yes. Talk of bitcoin being a digital store-of-value has been rife for some time now.Essentially this means that if the stock market bubble bursts, even economists agree it’s a bubble, expect the price of bitcoin to rally. It could easily hit $100,000 leave alone $50,000. So why 2018? Well, the signs of a stock market bubble burst are already there. Experts are already talking about it, and the topic is gaining traction on the mainstream media. Interest rates too are going up, which will hit company earnings in coming quarters. It doesn’t take much analysis to see that the stock market is ripe for a major correction in 2018. Once that correction happens, money will flow to safe assets such as gold, and bitcoin, already branded digital gold, albeit with more volatility.
All through 2017, bitcoin rallied even though there was little adoption. In fact many people across the world could even wrap their heads around, how to buy bitcoin. 2018 is quite different. More people now understand cryptocurrencies and the power they hold in terms of changing society.On this basis, you can expect the demand for bitcoin in 2018 to be higher than ever before.Once the bear run comes to an end and people feel confident to start pumping cash into cryptos, expect the value of cryptos such as bitcoin to rally like never before. In fact, a valuation of $50,000 is an understatement, if the exponential rise that cryptos usually have is anything to go by.It would not be surprising if MacAfee’s prediction of $1 million bitcoin comes true in 2018.
Bitcoin as currently structured has some problems with scalability and transaction costs. To make it more efficient, you can be sure that the community will come up with a way to make it more efficient.In fact there is already information out there that bitcoin will adopt the lightening network. Once this happens, expect the price of bitcoin to skyrocket since its utility value both as an investment and as a currency will have increased substantially.