Bitcoin in 2018
Monday, November 27, 2017 6:41 PM
Bitcoin rose much more in 2018 than even I expected, So now it's interesting to speculate (yes, @SJG, speculate) what 2018 will be like.
I think the main theme now becomes central bank response to it. Word on The Street is that they are starting to get a little nervous. Not alot yet, but concern is rising. Mostly it's because they think it's a bubble that people will get hurt by, but some also feel that they could legitimately lose power to it. (It's not only they that should be concerned, IMO, but even more so the big banks.)
So it seems likely to me that they will act in the way central bankers like to act: Understanding that the threat is often greater than the execution. I am thinking oblique hints at regulation will come out and the volatility we saw this year will continue. But the funny thing is that they really don't have much ability to regulate it unless they want to turn the country into a police state, which I don't think is likely. In the markets a credible but not at the end of the day real threat often means lots of fear but accompanied by a seemingly "inexplicable" rise when all is said in done.
Can Bitcoin continue to gain at this years rate? I am skeptical. Will altcoins come more into vogue? Depends if Bitcoin can pull off the Lightning Network and if we start to see things like Ethereum derivatives. (ETH almost certain to be the next coin that people demand derivatives for.)
So my advice to TUSCL in 2018 is to remember a very fundamental concept about markets: they like to climb a wall of worry. And, trust me, I think we are going to see plenty of worries in 2018.
What do the rest of you of think about Bitcoin in 2018? Come out and play skeptics! After all it would be a year until you are proven wrong and can talk tough and call the people who getting it right "idiots" in the meantime.
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