Bitcoin Price Target of $25000 for 2018 Achievable?

This year, there were heavy declines and selling pressures on all cryptocurrencies, but the hope of bullish trend in bitcoin price is still intact and in line with the optimism of Fundstrat Global Advisors head of research Thomas Lee.

Lee has forecasted this year’s bitcoin price to be $25,000, which is 270 percent more than the existing rate. Bitcoin use to be traded at a rate which was 2.5 times its mining cost. So, according to Lee, the value of bitcoin is further going to be increased by $9,000 by year end. The total Market value of all well traded cryptocurrencies reached to $800 billion in January. By June, crypto devalued by 70 percent. But still the collective market value stood above $250 billion.

This increasing trend in the value of a bitcoin has put many investors in an inquisitive state to think what exactly the future of bitcoin price is? Should it be bought? Whether Cryptocurrencies fit into the future of money or not? Let us see how these queries are dealt in this article.

Bitcoin is all set to replace fiat currency as it can buy many things. Since the reliability of any money lies in its value stability and Bitcoin, for that matter, is unstable in this regard. Its value keeps on changing. Hence, investors may find it risky. Another drawback which investors are confronted with is, it is limited in availability as compared to that of fiat currency. So its popularity as compared to normal currency might get damaged.

By July 2018, the value of bitcoin has decreased by two third but it is still three times more than the last year. This is so because the money transactions made through banks are trusted more as compared to bitcoin.

Actually Bitcoin works on a decentralized network, so trust has to be developed every time when a new transaction is made. Bitcoin’s market capitalization has reached above $300 billion in late 2017. This concludes that in case bitcoin replaces fiat currency, its market value will further apprehend into tens of trillions of dollars. But since bitcoin is not economically viable, due to its volatile nature, this can cause the fiat money to continue its reign on monetary system of the world.