Source: https://www.bloomberg.com/news/articles/2017-12-15/what-the-world-s-central-banks-are-saying-about-cryptocurrencies
https://www.bloomberg.com/news/articles/2017-12-21/goldman-is-said-to-be-building-a-cryptocurrency-trading-desk
http://fortune.com/2017/12/21/bitcoin-price-value-prediction-bubble/
Who knows where 2018 prices are going? Do you think we know what is going to drive the 2018 market for Bitcoin and other cryptocurrencies? The famous hockey player Wayne Gretzky was asked how he makes it look so easy and he said “he skates to where the puck is going”....meaning he looks at all information and positions himself to be “there”.
The chart below has 2017 predictions are fun in retrospect. Clearly #1 use case for Bitcoin and Cryptos was the introduction of cryptocurrencies as an asset class. Meaning that investors and traders were “buyers more than users”. All those transactions you see on the BTC network — how many are exchanges where people are investing or trading.
And of course #10 — a higher price was spot on.
But what about 2018 — we want to be position ourselves. To be honest, I still feel the #1 use case for 2018 will be “store of value” for Bitcoin. It’s gong to take time to enhance the network — and that is ok in my book.
2018 is the year of big money and big titans doing big things in cryptos so they don’t lose out to competitors. What this means for people who are hodl’rs — pick you coin (s) —- make them good picks and hodl — why use them? They will only appreciate with spectacular names entering the arena.
In no particular order here are 2018 movers and shakers that will move the Globe in crypto use or adoption IMHO (in my humble opinion)
#1 ) Facebook — Zuckerberg comes out “now” and says they need to do something with decentralized cryptos and blockchain and offer this within their business. What does this mean? Well we know (see source above) a key Facebook Messenger Executive joined Coinbase months ago. We know a Coinbase app will be a Facebook Plugin maybe in 3 -4 months.
What would be the use case? Could it be to be that Facebook wants to offer Western Union-like service between it’s millions of users? Imagine the amount of users sending $$$ each month. And Coinbase has Litecoin as the perfect crypto for this use case (low transaction fee/fast)—- they would be cheaper than Western Union. Maybe Zuck see what Steemit is doing and wants to invent their users before more leave.
#2) Business’s / Wall Street / Goldman Sachs Crypto Trading Desk comes in June 2018
There is big money and then there is BIG MONEY. Goldman Sachs represents Wall Street and now that the CME Bitcoin Futures are in place. Goldman wants in on the action for it’s customers. They want to invest or offer an Asset Class to their institutional clients who are looking for diversification.
The list of financial business’s getting into Cryptos in 2018 will make you head spin. Suffice to say, they see a market that is booming and their clients demand a place at the table. Who else is talking about crypto’s ? (See below) I think Fidelity also has some type of Partnership with Coinbase for showing crypto account balances etc.
The crypto “wildcard” are the Venture Capitalist’s who can create a Tesla or Space X or other Silicon Valley players. Bitcoin’s flame is drawing in these moths. They are the ones who tell people how to think on CNBC — they will either be on board or look very silly in 2018.
Last but not least
#3) The US Global Reserve Currency will evolve into a less position over time.
How much and how fast the dollar moves we can only guess. But I think we are seeing the crypto’s appreciate against the Global Fiat World. I saw a quote that Bitcoin is our “Fiat Brexit”. We are breaking away from the old system.
The dollar will lose purchasing power and quite frankly we would like to see a smooth transition and see both fiat and crypto exist over time. Sooner or later Governments need to make up their minds (see source above). Each is still trying to figure it out.
In summary, the #1 use case for 2018 again will be “store of value” for Bitcoin as all of the above and MORE plays out. Litecoin on the other hand, can make several killer use cases IF paired with a Facebook or Amazon for payments.
I am sure I missed many other glaring examples, please share some if you wish.
We will see....best wishes to all of you in 2018.