Don’t Worry! Cryptocurrencies Would Rise To Top In 2018

According to estimations of Dr. Hosp, the value of bitcoin would reach up to $60,000 in 2018. The impact of Lightning Network would offer upside for bitcoin.

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Don't Worry! Cryptocurrencies Would Rise To Top In 2018
Investors’ Worries Are Over, This Expert Says 2018 Would Be The Best Year For Cryptocurrencies

The 2018 started on a low note for cryptocurrencies. After hitting record highs in mid-December last year, the prices of various cryptocurrencies dropped significantly. The drop and high volatility led to a chaos among investors. Some of them lost a huge money, while some of them adopted a strategy of investing in different currencies to offset for varying prices. Some of the experts, top executives of tech giants, and researchers outlined that cryptocurrencies are like a bubble that would burst in the future at some point of time. While some of them called it a “fraud”. Though it is true that no government has backed the digital currency yet, CME and CBOE have begun bitcoin trading. There are potential upsides and downsides of the cryptocurrencies. Dr. Julian Hosp, the co-founder and president of TenX, opined that 2018 would be the best year for cryptocurrency. He has invested enormously after proper analysis.

Dr. Hosp outlined that bitcoin is the most significant cryptocurrency as a huge amount of transactions of government money that are supposed to go through cryptocurrency is carried out through bitcoin. The volatility in bitcoin prices affects all other cryptocurrencies. As of now, the market dominance of bitcoin is nearly 40 percent. According to his estimations, the market dominance would rise to 75 percent. The reasons behind this dominance are huge user base and the largest industry. It is facing challenges in scaling up as it handles only six or seven transactions per second. This justifies that bitcoin is not useful on larger scales. This challenge also leads to high fees per transaction.

The Lightning Network, a second-layer peer-to-peer off-chain networks will be deployed to decrease the price of transactions to almost zero and increase speed and scalability. With deployment, there will be sharp increase in transaction in next few months. According to estimations of Dr. Hosp, the value of bitcoin would reach up to $60,000 in this year. The impact of Lightning Network would offer upside for bitcoin.

Citing more reasons for flourishing cryptocurrency, he outlined that legitimate ICOs will be responsible for rise in interest in Ethereum. The demand for Ethereum’s digital coin will increase. The market capital of ether would rise to $200 billion by the end of 2018. Moreover, other platforms will experience the same rise in their value and overall market capital.

Many countries have been thinking about regulating cryptocurrencies. Many investors believe regulations would crash the market. However, regulations are required for legal certainty and stability. These regulations also boost confidence of investors to invest in the platform. When regulations were put on digital currencies in Japan, the market dropped initially. But it gained momentum eventually. Same was the case in Australia. Dr. Hosp predicted that South Korea would follow the same and market conditions will be take shape in a way they were in Japan and Australia.

Another vital reason cryptocurrency will fly high in 2018 is increase in investments by institutional investors. Nearly $10 billion to $12 billion has been invested so far into the crypto ecosystem, but this amount is nothing as compared to the amount of money institutional funds could invest. Though there will be potential risks involved in investment, there will be more investments from institutional investors. It is important to weigh in upside and downside before investment.

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