Bitcoin Price Prediction For 2018: Possible $20000 Valuation

(MENAFN- ValueWalk) With the recent huge growth in value, investors are about a bitcoin price prediction for 2018.

With how much bitcoin valuation has fluctuated recently, investors are understandably concerned about whether this is a reliable and safe investment opportunity. While certainly more volatile than many traditional investments, the huge boom in growth and ease of access is certainly appealing to both the experienced investor and optimistic first-time buyers alike.

Back in November, the value of the currency dropped nearly 30% before starting to climb to unprecedented heights. Coming up with a bitcoin price prediction for 2018 is difficult, but many experts are bullish when it comes to estimates of continued growth — at least for now. With how all over the place the value of bitcoin has been, it's important to invest cautiously.

Perhaps the most important driving factor behind the sudden boom in value is the fear of missing out among first-time investors. When the first jump happened and news of bitcoin's rapid increase in value hit the news, many people saw an opportunity to quickly buy in and take advantage of the climbing price. This sudden surge of new investment saw the price continue to climb, and currently, it shows no sign of slowing down.

Because bitcoin prices are not based on earnings as more traditional investments are, any bitcoin price prediction for 2018 is . Despite these issues, bitcoin analysts are looking ahead to what we can expect for the coming year.

In an interview with investing website The Motley Fool, David Drake, the founder of LDJ Capital, has suggested that bitcoin will reach $20000 next year.

The reasoning behind this prediction, and behind many predictions from financial analysts, is the fact that there's a limited supply of bitcoin. It's a simple issue of supply and demand. With more and more people looking to get involved with bitcoin investing, and a limited amount of bitcoins available, the price of bitcoin will likely continue to rise. 'here's a fixed supply of it but growing demand, when that happens the price rises,' said Drake.

The code behind bitcoins is capped at 21 million lines, however, there's only 4.3 million of them above the current supply. It's likely that the supply available to investors will continue to deplete, driving prices up to that possible $20000 valuation.

However, due to how volatile the market is and without a real measure to guide the valuation of the cryptocurrency, the bitcoin price prediction for 2018 is likely to be continually revised as new information comes to light.

Many experts had the outlook for the coming year pegged somewhere between $7000 and $11000 back in November, but after the incredible leap in value, the price prediction has continued to rise. With some analysts putting the 2018 valuation at around $20000, there's a real possibility that we could see the price climb even higher — if the recent rapid growth is any indication.

In addition to the 'Fear of Missing Out' factor driving the price increase, there are several in the world of bitcoin that have added to this major growth. The first, is the payment app Square's support for bitcoin payments. As a payment system that has quickly grown to a large presence in the retail market, the added ability to support bitcoin transactions has made the practical application of the cryptocurrency a little more apparent to the common person. Additionally, the launch of bitcoin futures from CME group further legitimizes the currency as a worthwhile investment opportunity. The futures move, specifically, will likely greatly increase the currency's trading volume and decrease volatility. Analyst Ronnie Moas of Standpoint Research thinks that the growth will continue: 'An argument can be made that the good news is still not fully reflected in the current price.'

Other analysts and investors aren't so sure that the volatility of the currency will ever decrease. In an appearance on CNBC's 'Fast Money,' hedge fund manager John Novogratz suggests that the future of the currency is anything but stable. 'There will be wild crashes in it because you're going to get to levels so far ahead of where the technology's at. It makes investing really, really exciting, but difficult.'

If there's one thing that's certain, the bitcoin price prediction for 2018 is certainly still up in the air. With estimates ranging from $5000, to $40000 or more, it's anyone's guess as to the path that this currency will take. It's looking likely, however, that we'll at least continue to see growth for some time. If you're not averse to some risk, you may be able to turn a tidy profit with bitcoin in 2018.

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