Bitcoin Could Reach $100,000 in 2018

A year ago, a bitcoin was worth about 800 dollars, today it’s worth nearly $18,000. The value of the most popular crypto-currency has been growing at an exponential rate.

So why is bitcoin growing so fast? Why is the price of bitcoin suddenly exploding?

“Because the market is discovering the unique characteristics of bitcoin. The fact that it is safe, that the final amount of bitcoins that will be in circulation (21 million) is already known, as is the rate of emissions of new bitcoins. All this is predictable, and the opposite of the current monetary system, where central banks can issue new dollars in perpetuity and create inflation (which makes your money lose value),” says Jonathan Hamel , consultant and founder of the Bitcoin Academy.

One thing that people often misunderstand is that Bitcoin is not about to replace PayPal, banks or credit cards. It is primarily a financial instrument. At the moment, it is above all a safe haven that competes with gold or the dollar. Its adoption or not as a bargaining chip is of little importance in determining its value.

For a growing number of investors, it’s gold 2.0. And if that theory holds, expect the price of bitcoin to rise again, say the optimists. The value of the world’s gold stock is about 6 trillion US dollars, and that of bitcoin 300 billion.

Jonathan Hamel expects bitcoin to reach $ 100,000 in the year 2018. “There will be a correction one day or another, but there is also a lot of money on the sides in this moment.

“Investors who have a lot of cash or who invest in gold… Some of their money will go to bitcoin. Do not forget that the market is just beginning to understand Bitcoin,” he says.

In the financial markets, there is a growing acceptance of bitcoin as a commodity in the same way as oil, gold or grain. Future contracts have just been launched last Sunday on a small exchange of derivatives, which will allow large companies to have exposure to Bitcoin. For small investors, there will soon be Exchange Traded Funds, probably in 2018.

That said, do not empty your bank account to buy bitcoins! Even the most informed analysts can not really predict the future, and the value of bitcoin can just as easily collapse tomorrow morning.

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Shakes Gilles

Editor of The Talking Democrat. He enjoys bike riding, kayaking and playing soccer. On a slow weekend, you'll find him with a book by the lake.