What Is the Future of Bitcoin?
Bitcoin’s future is at a crossroads. The world’s leading cryptocurrency is becoming increasingly viable in everyday transactions, but market prices are still generating as much anticipation among investors as they were a decade ago. And although predicting the price of Bitcoin is difficult, plenty of speculation is underway.
How High Will Bitcoin Go?
Many experts have high hopes for 2019, and there are a few factors that could cause Bitcoin’s price to rise. Bitcoin will soon have new applications in traditional finance, which could put the coin in high demand. However, the price of Bitcoin will probably not rise steadily, and fluctuations will undoubtedly occur.
Nobody knows just how high Bitcoin’s price will rise, but many experts have weighed in. Most recently, Finder.com.au surveyed a panel of experts who, on average, predicted that Bitcoin’s price will rise by 84% by the end of 2019. Currently, Bitcoin is selling at roughly $3400, meaning that $6200 is conceivably within reach by December.
One panelist, Ben Ritchie of Digital Capital, predicts that Bitcoin will rise even higher than that. He says that Bitcoin will reach $9500, largely fueled by Bitcoin’s integration with mainstream markets and traditional finance:
“[One thing to look out for] is the impact of the traditional markets on cryptocurrencies. Will bitcoin rise if [the stock market index]
drops? On-ramp and off-ramps to purchasing cryptocurrencies will improve in 2019 with Bakkt [a highly-anticipated Bitcoin trading platform] entering the market.”
Experts elsewhere have made even more optimistic estimates. Michael Novogratz, CEO of Galaxy Digital, and Sonny Singh, CCO of Bitpay, have both predicted that Bitcoin will rise to $20,000 by the end of 2019. However, these predictions were made last year, and recent predictions are generally more conservative.
How Low Will Bitcoin Go?
In the immediate future, Bitcoin will probably not deviate much from its current price of $3400. The price of Bitcoin significantly declined over the course of 2018, which has tested the patience of many investors. However, lower prices aren’t actually a bad thing, as Arthur Hayes of BitMEX explains:
“Contrary to popular belief, Bitcoin requires volatility if it is ever to gain mainstream adoption…It advertises to the world that something is happening–whether that is positive or negative is irrelevant…$2,000 to $3,000 is my new sweet spot.”
If Hayes is correct, the price of Bitcoin will not fall much further than its current position. Other experts have made similar predictions: Anthony Pompliano of Morgan Creek Digital Assets predicts that Bitcoin will stay around $3000 for most of 2019 before rising again. Since it is best to buy when prices are low, this is good news for new investors.
Does Bitcoin Have a Future?
The above predictions are merely short-term estimates; Bitcoin’s long-term value is another matter entirely. Cameron Winklevoss of Gemini has predicted that Bitcoin’s price will rise to $320,000 over the next 10 to 20 years. John Pfeffer, meanwhile, has suggested that Bitcoin’s price will rise to $90,000-$700,000:
“Bitcoin is the first viable candidate to replace gold the world has ever seen. So, if Bitcoin becomes the dominant non-sovereign store of value, it could be the new gold, or new reserve currency.”
Despite the fact that it is impossible to forecast Bitcoin’s price with 100% certainty, expert predictions do paint a speculative picture of Bitcoin’s projected value. And although waiting for prices to rise may be thrilling, it is important to invest before that happens so as not to miss out on any opportunities.