He has come out with a fresh trade price of the cryptocurrency in 2018. In his prediction, he forecasted Bitcoin price to hang within the price range of $6500 to $22,000 in 2018. This means the value will be quite stable within the announced range. This seems to be a mean price of both the “drop price calling” and the “rise price calling” leaving fewer avenues for arguments.
Nick Colas Analysis
Over 1000 cryptocurrencies have come to the scene posing a huge threat to the monopolization of the Bitcoin trade. Most of them have risen to the Occasion and stood as competitors of Bitcoin.
According to Colas, the Bitcoin will lose at least 40 percent of its market shares to the potential rising cryptocurrencies. When this happens, the value in trade market will fall at a minimum price of $65,000.
He said that his maximum price prediction for Bitcoin is a reasonable price. “Bottom line: Bitcoin can rally to $22,000 and still be reasonably priced, or plummet to $6,500 and also be correctly valued,” Colas said in his daily note. “We expect to see bitcoin trade for both prices in 2018,” said Colas.
Even though this is subjected to criticism under critical scrutiny, there are people or investors who are in strong agreement with this analysis.
The Prediction Is Opened To Further Development
The rise of Bitcoin price was attributed to several factors including the large acceptance rate of institutions and countries.
Probably if this continues in 2018, the price will be higher than expected. Colas said that his prediction is based on the current use of asset protection. To him, the price may rise above the $22,000 if bigger companies that make use of Bitcoin come on board.
“The only way it goes substantially higher is if/when someone comes up with a large-scale business that uses bitcoin. That may come in 2018. But for now, that scalable use case is asset protection, so that’s how we value bitcoin today,” he said.
A total Different Prediction from Other Experts
Nick Colas’ prediction is an interesting one but varies from other predictions. The variation may probably be due to the use of a different method, as bitcoin is a complex phenomenon. A Hong Kong trader predicted the Bitcoin price to hit $100,000 by 2018. Other predictions have estimated the price to hit at least $60,000.
Ronnie Moas, in mid-2017 predicted Bitcoin to hit $50,000. He also made a long term prediction of Bitcoin hitting $400,000. With such a great expectation of the future rise in price, he will not agree with Colas’ analogy. Moas, without giving any minimum price value forecasted it to hit $50,000 in 2018. “My target for 2018 is $28,000 and it may get upgraded again in the next few months,” said Moas.
The Asset Protection and the Dollar Bill Analogy
Colas said that Bitcoin has an advantage about its role being used as a real asset protection. “Bitcoin’s primary ‘real’ use case right now is personal asset protection,” he wrote. “Yes, that includes money laundering and tax evasion. But it also incorporates the legitimate desire of honest people living in countries with less-than-exemplary rules of law to shield some of their assets.” He added that the $100 bill is used worldwide for this purpose.
After he statistically proved his point to arrive at the minimum and the maximum price range, he calculated the midpoint price to be $14,035. “At the average of the high and low, we get to $14,035. That’s not far off the current trading price, which gives us the comfort we’re on the right track with our valuation.”
Regardless of the different predictions in the price of Bitcoin in 2018, the New Year seems to be an interesting year for the whole fraternities of the cryptocurrencies. It is a year investors have targeted a massive breakthrough.
The promising cryptocurrencies such as Verge and Ripples are in high expectations to prove their worth. Verge has been predicted to hit at least $15 in 2018. In fact, James McAfee said the $15 price target for verge will be accomplished by the mid-2018.