The big bitcoin drop described in my last article already happened. If you were reading me and watching the market, you already should have made at least a few bucks on this information. The question is what will happen next? As always, there are dozens of analytics each with their own point of view on this issues. However, there are objective trends which influence the price of bitcoin. Here we can list just a few, although there are a lot more points to cover on how financial formulas work on the cryptocurrency market.
First of all, the big drop was caused by stolen assets being dumped. If the hackers could keep them safely before being caught, trust me, they would. Thus we know that the current price of bitcoin is highly undervalued.
Second, the bitcoin market is a growing market. There are very few cryptocurrency exchanges right now, but their number is growing every day. As government policies change and gain strength over time, the number of these exchanges will grow exponentially. Each one of these exchanges runs pairs to BTC, meaning the demand for bitcoin is going to increase exponentially as well. We all know how demand works on the price.
Speaking about the government, did you notice their growing interest in bitcoins? Bitcoin is the financial tool of the future, no matter what you call it. Meaning that whoever has more bitcoins has more leverage. Quickly enough this market forces different governments to keep a part of their securities invested in this tool. Not everyone is in the game yet, so this “government” demand will also increase.
Another issue which few people seem to understand is how this tool works on B2B transactions. If you ever had the need to transfer fiat payments between two countries, you know how painful it is for a business in one country to receive fiat from a business in another country. Cryptocurrency is a much easier and faster process than banking offers right now. However, it takes time for businesses to adopt these new schemes for their needs. No worries, this process is a one-way street, once these big guys figure out how to do this and how much money they save from these transfers, they will become regular users of cryptocurrency.
Now even fewer people know the following: there have been rumors about certain organizations working on their own system of storing, securing and trading cryptocurrency assets. There have been many issues with cryptocurrency security lately. This will be the new trend: bitcoins are going to be invested into bitcoin security. These investments may be an even larger sum than the sum of the cryptocurrency stolen from the market. This of course, will lead to better security on the market and more investors.
Not only is bitcoin going to grow up rapidly, ethereum will also be the new “commodity” of the future. The new protocol which will be implemented by the ethereum team will definitely make the price sky high. What, you have not heard of “Casper”? “You Know Nothing, Jon Snow”.
Bitcoin and ethereum is something the kids of our generation are definitely going to live with in the future and the earlier you invest into the future, the more it will pay off for the next generation.
So summing this all up, the price of bitcoin may reach $10 000 in the nearest time (and most likely it will surpass this mark). The price for ethereum will be around $900 and will surpass $1000 mark as soon as the new protocol is going to be implemented. So keep reading and profiting!
Your best crypto-neighbor,
Bitcoinbabe