Bitcoin has been around since 2009. Since then we have seen its price increase from few cents to almost 20,000 USD in December, 2017.
I often ask myself is there any limit to this growth and where do I see the bitcoin price in near future?
We see crazy prediction from entrepreneurs like John McAfee saying bitcoin will be 500,000 USD by 2020, and Jeremy Liew claiming 500,000 USD by 2030, so these seems to me are crazy predictions and very different by time frame.
On the other hand some people think that any trade-able asset that increases 18-fold in value in one year can be easily described as a bubble and the price may crash to almost nothing in the near future.
Therefore the bitcoin price prediction for 2018 is extremely difficult as investors are currently speculating about the bitcoin price for 2018.
However, I am bullish on the bitcoin price for 2018 and I have conducted analysis suggesting that the bitcoin price will continue to grow and by the end of 2018 will be around 28,000 USD.
My bitcoin price prediction is based mostly on the fact that the Bitcoin Percentage of Total Market Capitalization (Dominance) will be at 55% by the end of 2018.
The bitcoin dominance was about 61% in the beginning of December 2017. Since than the bitcoin dominance was declining and today is at about 30% according to the Coinmarketcap.com chart below.
So, you will ask me why the bitcoin dominance will be 55% at the end of 2018 thus a price of 28,000USD? Well, because of the following factors:
- Bitcoin lighting network is coming.
The bitcoin transactions will be fast again and the transaction fees will be almost nothing. Therefore bitcoin will be used as a payment currency as well. - Bitcoin limited supply.
As more people are looking to get involved with bitcoin as they are afraid of missing out on bitcoin investing, and a limited amount of bitcoins are available, the dominance of bitcoin will likely continue to rise. - The Bitcoin price is the most stable compared to the price of the other cryptocurrency (altcoins).
So investors will shift their money from altcoins to bitcoin. - Bitcoin is considered just like the gold a store of value.
There are many investor who hold there bitcoin investment as a store of value, just like the gold. So even if the bitcoin lightening network is not implemented by the end of 2018, I still think that bitcoin dominance will grow as investors will get in bitcoin as being most popular store of value in 2018. - Bitcoin Forks.
There are bitcoin forks happening all the time, so people buy and hold their bitcoins in anticipation to receive new free bitcoins as a result of incoming bitcoin forks.