2018 could be the year of the Crypto Currencies. Let’s see a few reasons why Crypto Currency is expected to rise in value in 2018.
1. The work on scaling issues
Bitcoin is the most important cryptocurrency. It stands at about 40 percent of the market.
Some claim a 150 percent potential upside in bitcoin for 2018.
It has the biggest user base and the biggest industry. It still faces a challenge in scaling up for wider use. Bitcoin now can’t handle more than twelve transactions a second. Credit cards involve thousands of transactions per second, so the criticism about bitcoin’s ability to be useful at larger scales is understandable. The scalability challenge results in high fees as well.
There is a solution emerging, however. The so-called second-layer peer-to-peer off-chain networks allows for transactions off the blockchain, thereby decreasing the transaction costs almost to zero and increasing the speed and scalability almost infinitely.
In other words, second-layer networks solve the problems bitcoin faces, scalability and high transaction fees.
There are also other second-layer projects like Rootstock that would allow computations similar to those of ethereum to be done through bitcoin.
Exciting projects such as those could cause a significant spike in Bitcoins. I would dare say in the realm of 60 to 70 percent with the potential upside of 100 percent — and maybe even more.
2. Large scale and more legitimate Initial Coin Offerings
Initial coin offerings (ICO’s) are a crowd funding technique. This will impact the ethereum network. That will increase the demand for the platform’s Ether. More legitimate ICO’s will lead to greater interest in ether as we are already seeing with the billion-dollar ICO of messaging app provider Telegram and that of Kodak.
That means we could see a rise in the market cap of ethereum to $200 billion by the end of the year.
Increased Regulation will lead to increased trust in Crypto Currency. The market will gain more trust as it becomes more regulated.
There are several start-ups in the world today, that offer debit cards to help people spend their cryptocurrency holdings. As more people research crypto currency, the number of users and merchants is set to increase sharply in 2018.
5. Institutional investors
This will be the first year of solid institutional money flowing into the ecosystem. Because Crypto Currencies have become more popular more and more investors will help the currency.
To sum up, the likelihood of all five factors happening is unlikely. However, if even some of them happen, it would be a huge change to the Crypto Currency game.
If you combine those factors, the market’s upside potential could rise to up to seven or eight times the present levels.