In November 2017, a bitcoin cost about $650, a twelve-fold difference from the current price of $40,000. Considering this increase in value, it would be absurd to say that investors do not have a good profit. But what is yet to come?
Cryptocurrencies are constantly becoming a good investment, especially for high risk investors. Notably, the attractiveness of digital currencies is not only based on speculation, but also on their increasing adaptability in various industries. For example, throughout this year, several cryptocurrencies have formed alliances and partnerships with technology and financial giants. Ripple’s recent links with BBVA and the founding of the Ethereum Enterprise Alliance are some examples of these developments in 2017.
In addition, this year was characterized by major events that marked the world of cryptocurrencies, such as the billions of dollars that have been raised in successful ICOs. These developments helped to attract a lot of attention to virtual currencies and laid the foundation for the future development of the industry.
Considering this, cryptocurrencies will likely gain even more attraction in 2018. Although – if one can speculate at all – 2018 could be the year when digital currencies can witness a “real boom”. In fact, institutional money is expected to penetrate the cryptocurrency market this year, as is the case with CME Group, which has already announced trading bitcoin futures by the end of 2017. Although futures may be seen as an intermediary between investors conventional and cryptocurrencies, other opportunities such as the creation of crypto-ETFs* may also lead institutional investors to pay special attention to bitcoin and other digital assets.
On the other hand, increased media attention will also leave its footprint on the industry. The exposure of ordinary citizens to cryptocurrencies will have no impact other than urging the masses to choose their side. Which, in turn, could serve as an invitation for these people to tip or immerse themselves in the world of decentralization and invest considerable sums in the sector.
In conclusion, billions of dollars are expected to be invested in cryptocurrencies by groups of companies and new individual investors over the next year. Consequently, these events will have an important amplifying effect on market price levels and may even reduce their volatility. While we cannot say exactly what the outcome of this scenario will be, we can only imagine the valuation effects that currencies will have. After all, as Seth Klarman said, “investing is the intersection of economics and psychology”.
Is that you? What do you expect next year? Are you ready yet?
Publication Translated and Edited by Bitcoin Guide
Original Story: http://cryptocheets.com/blog/next-year-will-be-the-year-of-the-bull-for-cryptocurrencies