Roll the clock back to 2017 and everyone would have said that bitcoin and its peers were worth an investment. With bitcoin’s dramatic surge giving the crypto market as a whole a massive boost, everyone was jumping on the bandwagon and making a profit. However, as the market has slowed and hysteria has faded, many casual investors have exited the market. Indeed, with bitcoin’s price taking a nosedive in the early part of 2018, only the hardcore investors or those into tech were left with a stake in things.
Experts Still Believe in Crypto
For any commodity, this type of activity is common. When something makes the mainstream headlines, everyone wants a piece of the pie. When the hype goes away, so do the majority of investors. The crucial thing to remember, however, is that this doesn’t necessarily define how lucrative an investment is. Yes, cryptocurrencies aren’t the fashionable thing at the moment, but the market hasn’t died. In fact, if you ask those on the inside, bitcoin and the leading altcoins are still worth investing in.
Self-styled bitcoin evangelist Alistair Milne believes the leading cryptocurrency will be worth between $35,000 and $65,000 by 2020, while investor Tim Draper sees it hitting $250,000 by 2022. Helping to fuel these predictions are hope of better regulations. With governments around the world currently unsure about virtual currencies and their place in the world, regulation has been piecemeal and uncertain. In Q1 2018, Japan was flipflopping on exchanges and crypto trading. Similarly, the US government has been reviewing the technology and whether it needs proper regulation. In practice, some rash moves and apparent lack of understanding regarding what cryptocurrencies actually area has hurt the markets.
Good Things Happen When Interest and Money Mix
However, as governments learn more about the potential value not just of cryptos but blockchain technology, regulations could actually help the sector thrive. Away from the legal side of things, continued investment by big businesses could also fuel the next crypto surge. As noted on Coinlist, long-standing tech manufacturer Fujitsu is now using blockchain technology to help local economies in Japan. In addition to investments from outside the industry, those inside it are also making investments. In recent months, the crypto headlines have contained stories about Ripple giving $50 million to universities and Binance setting up a $1 billion fund for blockchain startups.
This combination of external interest and internal activity is clearly a positive. With businesses still willing to invest and, in turn, crypto companies using their resources to grow the industry, the interest is still there. When interest and financial support come together, anything can happen. Naturally, this doesn’t mean bitcoin or altcoins will boom in the coming years. However, the signs would suggest that the technology isn’t going to fade into the ether. Will it make millionaires of amateur investors overnight? Probably not anymore. However, the industry is clearly growing and, should it mature, products like bitcoin should prove to be solid investments over the next decade.