Three Predictions You Can Believe for Crypto in 2019
Realistic Expectations for Digital Assets in the New Year
It happens every new year — unrealistic predictions about the coming year fly fast and furious: electric cars will overtake the automobile industry, we’ll have a colony on Mars, we'll all be wearing self-lacing shoes, and President Kanye will declare Bitcoin the national currency. We're not into that sort of thing — we want to talk about what's really happening in the world of cryptocurrency. To help bring our Railto readers into the new year, we've put together a list of the top three realistic predictions for crypto in 2019.
Believable Crypto Prediction 1: Institutional Money Will Spur Crypto Growth
Perhaps the most important development will be that cryptocurrency will be found on the Nasdaq in 2019.
Why we believe this prediction could come true: As this article in Fortune points out, Bakkt, a digital assets exchange with Wall Street connections, is "pitching itself as the venture with an inside track at bringing Bitcoin mutual funds and ETFs [Exchange-Traded Funds] to America’s 401(k)s." Adam White, who is now joining Bakkt after helping build Coinbase into a crypto start-up icon with 25 million customers, thinks it’s clear that Wall Street is ready to package digital assets for the masses. Our verdict is industry trends and leaders suggest that institutional money will be a catalyst for a resumption of cryptos grand bull market in 2019.
Believable Crypto Prediction 2: Bitcoin Will Rise From The Ashes
Crypto will follow the path of Apple and other tech giants by leaving its early volatility behind in 2018, and 2019 will be a period of stability and growth. The crypto market is currently in state of extreme volatility. With Bitcoin’s price dropping there is a panic that it will spiral down and take the entire cryptocurrency platform with it, but most savvy observers reject this sort of doomsday thinking. Many point to the early volatility of big tech and companies like Apple. Most smart investors see crypto going the same way, in particular, Bitcoin.
Why we believe this prediction could come true: A host of experts say so.
Sonny Singh, CCO of Bitpay, says not to panic looking at the current market conditions. He asserts, citing the imminent arrival of a Bitcoin ETF, there is a high possibility that Bitcoin prices would reach $5000-$20,000 by Thanksgiving 2019.
Tom Lee, ex-Chief Equity Strategist for JP Morgan and co-founder and market strategist for Fundstrat, believes BTC prices will grow due to more institutional investors taking on Bitcoin and a steady increase of the Bitcoin user base. Lee points out that the increase in demand for an inherently limited product like Bitcoin is likely to increase its value over time.
Sam Doctor, head of data science research at Fundstrat, has predicted that by the end of 2019, BTC prices might reach nothing less than $36,000 with a probability of $64,000. He is predicting this rise because of his strong sense that BTC's fair value is much higher than the current price.
Believable Crypto Prediction 3: Ethereum Is Down But Far From Out
Ethereum may have lost 90% of its original value, but advisors want you to remember that the blockchain for Ethereum is one of the most useful in the blockchain space. Because Ethereum can process transactions more quickly and cheaply than its rivals, things are looking up. Lower transaction costs will increase usage of the entire Ether network, and increased network usage will in turn increase Ethereum prices in 2019.
Why we believe this prediction could come true: Blockchain pioneer Steven Nerayoff believes Ethereum's future is bright because its faster speeds have become a market advantage. Nerayoff says, "Lower transactional costs are increasing usage of the entire network, and that’s increasing the network effects of it. There are more users, more projects being built on there and more programmers." More, more, more — sounds like growth to us. Increase in applications use, more companies adopting decentralized cloud-based applications, and increase in usage of smart contracts are just three reasons why the Ethereum blockchain is expected to become the second most valuable cryptocurrency in 2019.
Check back this time next year to see how we did with our three believable predictions for cryptocurrency in 2019.
As always, we advise you to do research, take time and think carefully before you invest in any stock or cryptocurrency.