The hype around the cryptocurrency reaches unimaginable proportions. Talks about bitcoin and its analogues can be heard from every corner. Everyone wants to know what and when to buy, to earn a lot of money or at least not to lose the investment. But very few people understand how the crypto-market actually works.
To find out the current bitcoin forecast for 2018-2020, you should know the basic rules for investing in cryptocurrencies. Understanding the basics will allow you to build your own investment strategies without regard to the opinions of experts, who can often be wrong.
Forecast for Bitcoin
After a rapid growth in the middle of the year and no less rapid fall of bitcoin at the end of 2017, many investors have lost faith in the prospects of the market. But for some reason, many people forget about the trajectory of the price and what it was after each drop in the value of the coin. It is enough to look at the chart to understand that the current state of affairs is not out of the ordinary. Large drawdowns of prices have happened repeatedly and after each fall, growth inevitably followed:
- 1077$ > 638$ in 2013;
- 863$ > 465$ in 2014;
- 1154$ > 775$ in 2016;
- 4500$ > 3300$ in 2017;
- 19500$ > 5000$ in 2018;
Knowing the retrospective, it is easy to draw an analogy between the situation with past price falls and understand what will happen in the future. With a high probability after a long correction, intensive growth will follow. The cost of bitcoin can soar above 20,000$, followed by a new correction with a maximum drawdown of up to 10,000-15,000$. The outcome to a stable trend of rising prices is expected by the end of 2018 and early 2019.
Investing in bitcoin, it is important to understand the following things:
- There are no alternatives to this coin, so if you are not investing on peaks, you will repay your money even if there are strong drawdowns;
- Never buy when the price soars to the maximum values for the last 2-3 months. Wait for the correction.
- Never sell when the cost of the coin falls to the minimum values over a similar period of time. Wait for growth;
- Bitcoin is threatened only by the appearance of a more promising currency and legislative restriction (primarily in the US and China). If there is neither one nor the other in the information field, do not worry about the price – it will inevitably go up.
Forecasts for altcoins (Ethereum, Litecoin, Bitcoin Cash, etc)
The rate of most altcoins is strongly tied to the bitcoin rate. If the price of the latter drops, there is a high probability that most other coins will be cheaper. Therefore, when forming an investment strategy, it is important to consider the prospects of bitcoin. This rule is relevant only for long-term investments. It doesn’t work if you want to make money on price “swings”.
In 2018-2019, the course of most altcoins will be tightly tied to the bitcoin rate, because due to uncertainty in the market, any increase in the price of the “main” coin will spur the entire crypto-currency market. If the bitcoin will greatly sink, altcoins will be in a similar position.
The forecast for Ethereum is a return to the” pre – crisis ” cost-1000-1300$ by the end of 2018. Bitcoin Cash is waiting for a gradual increase, but most analysts do not predict a return to the previous 2000-2500$. The probable limit of this coin is 800-1200$.
What successful businessmen think about cryptocurrency
“A whole industry is built around bitcoin. People make huge fortune on it. I believe that it works and it is promising”.
“Bitcoin is amazing because it shows how cheap currency transactions can be. Bitcoin is better than any known to me fiat currencies.”
“In my opinion, bitcoin is something. It is possible that this is a good thing. This is a good thing for making anonymous payments, which do not always carry something bad.”
Most well-known entrepreneurs respond positively to the use of blockchain for financial transactions, noting the following advantages:
- Absence of intermediaries between the sender and the recipient;
- Decentralized system, absence of one controlled server;
- High degree of protection.
A high assessment of the prospects of the cryptocurrency among competent professionals suggests that long – term contributions to the “crypt” are reliable and worthy of attention investments.
Prospects of cryptocurrency as a payment system
Blockchain technologies do not stand still. Regularly there are new ICO, which in some ways surpass its competitors. If the development of cryptocurrency continues at the same pace, within ten years the blockchain will compete with traditional methods of monetary calculation – banking operations and centralized payment systems Paypal, Webmoney, Yandex.Money, etc.
In many ways, the success of introducing cryptocurrency to the masses depends on the community of Internet entrepreneurs who actively invest in blockchain. The successful launch of “GRAM” level projects from Pavel Durov can trigger a chain reaction that will strengthen the position of “crypt” and make it a reliable platform for anonymous payments. At the present time, such prospects remain very vague.
What cryptocurrencies to buy in 2018-2020
Investing in bitcoin is still a promising investment. The correction and drop in the cost of the coin is a great way to enrich the bitcoin investment portfolio at the lowest price before a powerful breakthrough in the direction of the rise in price.
In the case of altcoins, you need to be more careful. Not every coin can restore its position after the collapse of the price in early 2018, even if the market as a whole shows positive dynamics. During the correction, you should take a closer look at Ethereum and the new promising GRAM coin.
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future
GENERAL RISK WARNING
The financial services provided by this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.