The term cryptocurrency has become widely spread amongst the investment news world in recent times due to its increasingly fast growth in value. Although the phenomenon began in 2008 with the release of Bitcoin, more and more cryptocurrencies have now established their presence in the market, reaching massive market values already, with thousands of investors purchasing coins on a daily basis. With large growth forecasted by analysts worldwide, regulations in this ‘currency’ market are not to be seen, but the UK treasury is working with the EU to tighten up on potential regulation in the near future, which may prevent fraudsters using the currency as a means of exchange and also hinder the growth potential of some of these cryptos. Strong growth is still expected before we see a collapse in this market.
A stunning display of growth for Bitcoin throughout 2017 saw its price per coin increase by some 1064%. With many fluctuations in between, the general price of Bitcoin has been on an upward trend since it came into existence as the daily volume of transactions through Bitcoin increases.
Due to the limited supply of Bitcoin, this makes the coins scarce and greedy investors want in, before it is too late. There are currently 21 million Bitcoins available for purchase, and 16.7 million have already been bought. As we come nearer to the time Bitcoin sells out, we will see the price of Bitcoin exceed the price of $100,000 per coin.
Proven block chain software which makes Bitcoin secure has made it separate from normal currencies, and the the privacy nature attached to using the currency has made it an attractive option for fraudsters looking to avoid paying tax and also for those that have wanted to launder money illegally, in the past. It is more likely for a bank account to be hacked, than a Bitcoin to be accessed (by others).
Although very strong growth is still predicted, a bubble can still burst. There will be a change in situation once all the Bitcoins eventually sell out and the value of a Bitcoin will become unknown. We are still many years away from all the Bitcoins selling out, as price increases will mean Bitcoins sell at a much slower rate, but a collapse or decline may occur once all the Bitcoins have sold.
Other Cryptocurrencies are also enjoying major growth, as the trend spreads around the media, more people want in. Ethereum and Litecoin have grown massively throughout 2017, which will mean investors are also purchasing these currencies as well as Bitcoin. The more fragmented the market becomes, the longer Bitcoin will last and remain large in value. As more people spread their investment amongst other currencies, the longer it will take for Bitcoins to sell out, meaning it will remain high in value for years to come.
Regulation is to be introduced in the UK at some point in 2018. With no central bank to govern cryptocurrencies, it is uncertain how this will be done as of yet. With cryptocurrencies seen as an investment purpose as opposed to a means of exchange, currently – the likelihood that regulation will have a major effect on growth is low, and strong growth is still expected for Bitcoin and other cryptocurrencies over the next five years.
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