What Does Bitcoin’s Future Hold in 2018?

What Does Bitcoin’s Future Hold in 2018?

What Does Bitcoin’s Future Hold in 2018?

Have you been caught up in the Bitcoin craze? It’s not the only cryptocurrency performing well but it does get the most notoriety. Cryptocurrency has been taking the investment market by storm since the beginning of 2017 and in December several of digital coins saw tremendous gains, with Bitcoin even exceeding $20,000 at its high point. That meteoric rise over a year started with Bitcoin valued at $900 in December of 2016. More recently, the cryptocurrency, along with the rest of the digital coin market took a big, dropping to just under $9200 on January 17, losing more than half of its value from December, and more than $30 billion of its market value in 24 hours.

The Ups and Downs of Bitcoin

Large swings in value are nothing new with the most famous cryptocurrency. It has seen large swings of more than $1,000 in a matter of hours, so owning Bitcoin is definitely a thrilling ride or highs and lows. With such a volatile history what can owners, and those who want to get in on the action, expect with Bitcoin in 2018? That depends on whom you ask. Some critics and skeptics say you should not invest in the cryptocurrency because Bitcoin has no real value. Of course, it’s no surprise that others strongly disagree.

How High Could it Go in 2018?
Take one Saxo Bank analyst, for example. Kay Van-Peterson was high in Bitcoin back in December of 2016 when it had a market value of only $900. She correctly predicted that it would hit $2,000 at some point in 2017. It only took until May for the cryptocurrency to blow by that benchmark. So what does Van-Peterson think of Bitcoin’s potential in the current year? You could say she’s still very high on it. According to Van-Peterson, Bitcoin is poised to make yet another remarkable jump. In fact, she says it could reach as high as anywhere between $50,000 and $100,000 in 2018. She’s not alone.

Other Analysts Agree
Julian Hosp, the co-founder of a firm created to help owners of cryptocurrency spend their digital coins easier, is also very high on Bitcoin. He expects the currency to hit as high as $60,000 in 2018 but he also would not be surprised to see it take a steep dive before it rises to that level. At least one other expert in the cryptocurrency space, from Octagon Strategy, also believes Bitcoin has a good chance of reaching a $100,000 value. But again, not everyone is on board the cryptocurrency train. World famous investor, Warren Buffet predicts a “bad ending” for cryptocurrency in general and the CEO of J.P. Morgan goes even further, calling Bitcoin a “fraud.”

Should You Get in the Game?
So is Bitcoin all it’s cut out to be? Does cryptocurrency, in general, have any real staying power? There is an inherent risk with any investment and cryptocurrency is no different. That means the best advice is to invest wisely and avoid using money you couldn’t afford to lose.

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Alan Olsen, CPA

Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

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The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

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