Bitcoin is unarguably the oldest and the king of cryptocurrency, no wonder it holds more than 50% share in the cryptocurrency market capital. In the wake of 2018, investors had high hopes, especially when it hit an all-time high of $20,000 in December 2017. Some of the top cryptocurrency investors and forecast experts, basing their predictions on this bullish band rise predicted that in 2018, bitcoin will hit $160,000. However, 2018 have not been so rosy for the creation of Satoshi Nakamoto, as bitcoin has lost its values, currently in its all year low.
Staring from the first month of 2018, the currency took a hit in what would eventually lead to series of dips throughout the year. One crypto asset had deflated to $16,000, then it went further low to $12,000. The deflation continued, such that at the half mark of the year, it had lost two-thirds of its value, trading at approximately $6,000. It continued toppling within this range down to the summer of 2018, causing it to be in what is termed transition band. But just when investors thought that was the lowest it could go, it took another dip. In November, it deflated to $3,600 and it inflated to $4,000.
One of the major problems that bitcoin encountered in 2018, that most forecasters didn’t put into consideration is the saturation of the cryptocurrency market. Although it held the largest share of the market throughout the year, there was quite a lot of cryptocurrency that have was introduce in the course of the year. Also, in the first quarter of 2018, the crypto space was saddled with allegations of frauds, theft and consistent hacking. This in turn reduced the credibility of the technology, making investors lose their money and also, causing a reduction in new buyers.. However, experts believe that most of the smaller altcoins that have saturated the space will be valueless in 2019, consequently reducing the saturation of the cryptocurrency space. And with security measures that have been undertaken, the blockchain and cryto wallet features are geared to increase credibility.
Another problem that contributed to the deflation was the unregulated initial coil offerings (ICOs) which have been capitalized on by fraudsters, stealing money worth millions of dollars from investors. However, in 2019, this might change. This is because the Securities and Exchange Commission (SEC) took measurable steps in regulating ICOs, enforcing strict registration processes and providing emergency steps that are to be taken to stop ICOs that are suspected to be misleading information to potential investors.
In the wake of 2018 (December 2017), Bitcoin futures were introduced. The bitcoin futures availed top investors the will to exert pressure on the value of bitcoin. This has given way for theories, making many people believe that bitcoin futures, in the words of Leo Melamed (CEO of Chicago Mercantile Exchange CME) is ‘taming’ the value of bitcoin.
With the introduction of bitcoin as a payment method, statistics have shown that it might not be a good idea on a long run. This is as a result of the stagnation in bitcoin ATMs that are installed in various parts of the world. Also, stablecoin seems to be a major competitor, capable of knocking out bitcoin on the platform of payments and transactions. However, its integration as a payment currency still have a probable future.
As at December 2018, a bitcoin is valued at $3,400. As predicted in 2017, the ownership of bitcoin is still relatively low but forecasters believe that all things being equal, if the cryptocurrency space is cleanse of smaller altcoins that have saturated it, bitcoin will rise again in value, leaving its transition band and skyrocketing into the band we previously know it to be in; bullish band. On the other hand, notable investors in bitcoin and analysts have continued to stress that the cypto coin in 2018 went through fundamental unraveling, reminding investors that it is just like any other investment with risks.
To summarize, 2019 promises to be a good year for bitcoin. As it seems like the year was used to solve rising issues that borders around it. With its value at $3,600, going into another year compared to the $20,000 of the previous year, you can as well say anything can happen. But if we are to trust experts, then it will be a good year.