2017 was a year of explosive growth for the cryptocurrency industry, with Bitcoin leading the charge. We saw various currencies reaping over 1000% returns gaining the attention of the media and the general public. Now, the big question is, what will happen to this industry throughout the year ahead.
As more people start to wrap their heads around the industry in general, in the early part of 2018, I think we will continue to see the rise of cryto currency, including the mainstream coins (bitcoin, ethereum) as well as the various smaller 'alt coins' (reddcoin, dogecoin etc). As the worlds population continues to flood into the market, I believe this will create an extremely volatile scenario. Crypto prices are very subjective in the first place, but add on the fear and greed from the general public and it could be the recipe for a steep rise and fall for prices.
Although I am a huge believer in cryptocurrency and believe that it is here to stay, I can't say that it won't be without significant price volatility. As this continues to be a trending topic gaining more media attention, the general public will continue to dive in head first. Just like the stock market, more and more, pricing of cryptocurrency will be driven by human emotions such as fear and greed.
Because of the popularity, we're seeing new coins (ICOs) flooding the market all claiming to have huge potential and real world application. My belief is that may of these coins will vanish as quickly as they showed up.
Is Crypto Industry in a Bubble?
People often refer to cryptocurrency as being in a bubble, similar to the '.com' boom and bust. and I tend to agree. Although there is a revolutionary technology at play, the craze of the masses are inflating prices, and people are putting money into smaller 'penny stock' companies without doing the proper due-diligence. This mentality is driving prices way higher than is technically justifiable. Wit that said, out of the '.com' fiasco, some of today's biggest companies emerged including Google, Apple, Microsoft and Amazon. I believe the same will happen as we come out the other side of this cryptocurrency craze. Companies like Bitcoin, Ethereum, Ripple as well as others who solidify their place in the market will establish themselves as some of the biggest companies in the world.
There's a reason why Bitcoin and Ethereum are the leaders in this space, and I believe they are setting the foundation for the future of the industry. The more I read and learn, the more I'm growing to love the Ethereum network, their technology, and what it is capable of achieving. As it turns out, many of the smaller coins hitting the market are based on the Ethereum platform using what are called Ethereum 'smart contracts'.
Throughout the year ahead, I look forward to continuing to grow my position in various cryptocurrencies. Placing the bulk of my investment into a select few currencies I believe have long term potential to withstand a potential crash. I'll also continue to evaluate some of the new, smaller coins in hopes of finding some diamonds in the ruff, and through a bit of money into them in hops of short term gains.
This is my two cents, and I'm excited to see how things unfold throughout the year ahead. Good luck to all!
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