Bitcoin had a tremendous year in 2017. The price appreciated by more than 700%, with record-breaking valuations on a near monthly basis. There was a noticeable increase in mainstream media attention, with major publications regularly reporting bitcoin news. Most importantly, the bitcoin community has grown larger and more dedicated than ever.
With so much success in the recent past, the future looks bright for bitcoin. Here are four important ideas to keep in mind as you plan for 2018.
(1) Bitcoin Influencers Believe Bitcoin Has a Long Way to Go
The biggest influencers in bitcoin believe that it can grow to a much higher price than $7,000 per token. While bitcoin’s value seems gargantuan already, there’s a lot of room to grow. John McAfee, the famous entrepreneur, and cryptocurrency expert has stated that he believes bitcoin can reach a price of $500,000 per token.
(2) Past Performance Does Not Guarantee Future Results
The most important rule of investing is that you can’t expect your assets to perform the same way forever. Never invest money that you cannot afford to lose. Even though there is a lot of optimism and hype around bitcoin, that is no guarantee that it will continue to gain value in 2018.
(3) Altcoins are Worth Watching
Any cryptocurrency token that is not bitcoin is called an “altcoin.” The list of these tokens is long, including popular altcoins like ethereum, dash, and silicon. There is a lot of innovation happening in the altcoin space, so you should give it some of your attention in 2018.
(4) Bitcoin Forks May Create Unusual Market Dynamics
2017 saw two successful bitcoin forks, leading to alternative versions of bitcoin called bitcoin cash and bitcoin gold. Of these two, bitcoin cash currently appears to have more support and a higher valuation. While the original bitcoin is likely to retain its place at the top of the cryptocurrency heap, it’s worth paying attention to and even hedging some of your investments in these other forked tokens.
Bitcoin is Just Getting Started
It’s easy to forget that bitcoin is less than ten years old. There’s a long way to go before anybody knows what the real impact of digital currencies will be. They could fail or become truly mainstream, with a ton of possibilities in-between. Stay vigilant and you can tap into great bitcoin opportunities for 2018.