Tuesday, December 26, 2017

The roller coaster of Bitcoin: what should the crypto universe expect in 2018? :


Between soaring and tumbling, Bitcoin has had many opportunities to amaze the investor as well as the private individual this year. The general upward trend will continue in 2018, says Sputnik Roman Tkatchouk, chief analyst of the trading company Alpari, specifying the prospects of crypto-future.

Once entered the market, cryptocurrents turn heads, while they are a product still unstable and risky, but already extremely popular. The best known cryptocurrency, Bitcoin, is an innovative phenomenon, which makes it difficult to characterize its prospects, says Roman Tkatchouk, senior analyst at Russia's leading Forex-trading company, Alpari. And yet, some predictions are emerging as to the role of Bitcoin and its rivals on the market next year.

Increases and decreases: Will Bitcoin stabilize?
"Classic analysis tools do not always work with Bitcoin. The general upward trend persists. As evidenced by the Chicago Futures Exchange, the market consensus is also in line with growth, "he said in an interview with Sputnik. 

The past of Bitcoin is marked by instability: it has experienced several violent falls, all the more striking after its increases. Last week, its soaring to $ 20,000 led to a drop of more than 30% on December 22 (to reach the $ 13,000 mark). In a day, this cryptocurrency has strengthened its value, from $ 15,258 to 16,000, according to the exchange service Bitstamp based in Luxembourg, but will this calm take a long time?
"A highly volatile nature is typical of new products," says the analyst. "Energetic growth is traditionally followed by a sharp decline."

Another factor contributing to the fluctuations of cryptocurrency is that, until recently, Bitcoin was on sale only on digital exchanges whose viability is lower than that of traditional stock exchanges.

Probable impact of cryptomarket on traditional currencies
Currently, the size of the cryptocurrency market is still modest compared to traditional assets. The capitalization of Bitcoin, for example, is hundreds of times lower than the monetary base of the United States, the capitalization of its stock market or US GDP, notes Mr.Tkatchouk.
Although blockchain technology (algorithm for storing and transmitting payments, contracts in a transparent, secure manner without the use of a central control body), designed for Bitcoin, is also of interest to other economic sectors, its prospects are not however not unlimited.

"In the future, blockchain technologies can occupy part of the payment systems market, but they do not totally defeat Visa, MasterCard and PayPal," the analyst said. "In some cases, the consumer needs a regulator and the risks of the blockchain are not yet studied in depth. The outlook for cryptocurrencies will depend largely on the position of global regulators. "

Chinese influence on Bitcoin
In the context of the bustling Bitcoin dance, it has been hypothesized that China could collapse the price of this cryptocurrency. Is this Asian country really capable of doing it?

"China is actually a dictator of fashion. She was an example when Bitcoin was down in September, where the Chinese regulator tightened the bolts in the cryptocurrency market, "said the interlocutor of the agency.

Already at the time, it was believed that China would seek to bury the crypto-universe, after the Chinese Central Bank had decided to ban the cryptocurrency stock exchange and in itself the procedure ICO (Initial Coin Offering: method of fundraising operating via the issue of digital assets exchangeable for cryptocurrency during the start-up phase of a project). The announcement dropped the prices of Ether and Bitcoin.

The fate of cryptorivals Bitcoin
Despite the fact that Bitcoin has pulled the coverage of popularity to itself, each cryptocurrency and blockchain technology has its advantages, for example: the anonymous transactions of the Dash, the smart contracts of the Ether (smart contracts, computer protocols that facilitate, check and perform the execution of a contract).
"The popularity of cryptocurrency depends on whether investors view this or that blockchain technology as promising. Tellingly, Bitcoin Cash, Dash and Monero have recently experienced a sharp rise, "said Mr.Tkatchouk.

In this, currencies related to physical goods such as gold or crude are not likely to conquer the market:

"In my opinion, cryptocurrencies backed by commercial assets are not going to be very popular," he says, prompting the example of Bilur and GoldMint (dependent on oil and gold, respectively). ). "If you are betting on a rise in the price of crude or gold, it is better to do it directly via these assets".

For the same reason, buying the real Bitcoin is better than buying a futures contract, concludes Mr.Tkatchouk. This despite the fact that the real value of this cryptocurrency is conditioned only by its demand and therefore if no one is interested in Bitcoin, its value will fall to zero.

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