Find the best broker for your trading or investing needs The cryptocurrency graduated from outsider status to becoming part of mainstream conversation as its volatile price trajectory, scandals, and promise crafted an exciting growth story. By the end of 2017, bitcoin futures had begun trading at prominent exchanges, such as CME
CME Group Inc
Created with Highstock 4.2.6
and CBOE, and governments around the world were considering regulation for the cryptocurrency. If bitcoin’s enthusiasts are to be believed, 2018 will be another stellar year.
To make their point, they cite price predictions by experts and analysts. But it is difficult to take those predictions at face value. This is because bitcoin is unlike other fiat currencies.
In addition to the economics of supply and demand, technological innovations and government regulation also play a significant role in determining its price movements. With those caveats in mind, here is a brief list of factors that might influence its price in the coming year. High transaction fees regularly cropped up as a countervailing narrative to bitcoin’s growth story in 2017.
The SegWit hard fork, which increased the size of blocks on bitcoin’s blockchain, was expected to speed up numbers of transactions and lower their fees. Out of the 156 companies that have signed up for activating SegWit since its inception, only 17 have implemented it so far.
Per recent statistics, SegWit constitutes only 10% of all bitcoin transactions. Their reasons are a complex set: from the difficulty of implementing security and technology upgrades for the hard fork to the fact that SegWit is relatively untested within bitcoin’s ecosystem. Read more from investopedia.com…
thumbnail courtesy of investopedia.com