The price of Bitcoin has plummeted over the past year or so. The price is highly volatile and is increasing and decreasing rapidly within just a day or so.This has made it impossible to analyse it technically. Nevertheless while investing in Bitcoin, one should invest in it for a longer time duration. This will yield better results according to experts. With an increased awareness among investors, the currency of Bitcoin is here to stay.
Experts are quoting Metcalfe’s law which states that the value of a currency increases if the number of users increases. This scenario is applicable in case of Bitcoin also. Bitcoin prediction is built on the basis of Blockchain technology. This makes it less in value when it is compared to other cryptocurrencies which are built using the same platform. With many other cryptocurrencies entering the market every day, the popularity of Bitcoin is getting reduced with each passing day. Currently there is no regulatory body in place to regulate currencies like Bitcoin. But with time, regulatory bodies are bound to arrive at the scene. Nobody knows as to what effects this regulation will bring about on Bitcoin.
Initially experts were pr3dicting that Bitcoin would reach $14000 mark by the middle of 2018.But recent developments have brought in a more staggering figure. Investors are hoping that Bitcoin will break the $100,000 barrier in the next year. Even though some people are of the opinion, that all these values are nothing but hype. But Bitcoin’s recent –price changes have made it possible to believe that anything is possible. This is because one could see that, the value of Bitcoin has appreciated around 20 times in just the past year itself. There is still a lot of room for growth. Hence the price range may well cross the mark causing the price to fluctuate drastically.
Experts are of the opinion that, Bitcoin will more likely emerge as a tool to store value rather than just remaining as a currency that is mainly used for transactions. The price of transactions with Bitcoin has increased drastically. This will keep on going up until the underlying issues are addressed. As already told, there are many new currencies that are entering the market every day. These new currencies are better at handling more number of transactions compared to Bitcoin. This can cause a decrease in the value of Bitcoin. A new futures contract for Bitcoin is likely to be introduced by the middle of December. This will increase the rate of adoption of Bitcoin make it easily accessible to public.