- Crazy Bitcoin Ride
Bitcoin had a very crazy period within the past 1 year. It has gone from $1,000 to $20,000 in matter of months before falling back to their original levels. The period was so euphoric that people were buying bitcoins like sheep and their belief turned to be over bullish despite over the concern of it's value and despite new coins coming up which are operationally much more superior than bitcoin. The bitcoin holds it's value due to be simply the first mover or the world's first cryptocurrency.
From the past 1 year chart of Bitcoin you must have wondering coming of the old tulip mania which caught everybody by surprise. For some this was the same moment for the more knowledegeable one it was clear that people are getting crazier day by day.
Adding to the fuel was the influencers pretending to be experts and claiming that the fair value of bitcoin is around $1 million within next 2 years. The claim was so stupid and lacked any substance. The whole environment was getting euphoric and influencers also fueled the market just because it was beneficial for them.
Period of Stabilization
Back to January,2018 , bitcoin is trying very hard to sustain or again perform it's another pump which can start the same cycle as it was back then. At the same time bitcoin is also loosing dominance on the overall cryptocurrency market as per the CMC. The present proportion of bitcoin in cryptocurrency industry is around 40% and the trend shows that as more and more coins will come into the market and their usage increases, it would become very difficult for bitcoin to sustain it's value. The only thing that is keeping it back is the lack of similar alternative which has the same usability.
But as per my opinion, as Ripple(XRP), RailBlocks(XRB) and Stellar Lumens(XLM) usage start increasing it will be very difficult for bitcoin to sustain it's value. And the probability of this happening is almost 100%. Infact, RailBlocks and Stellar will roll out their blockchain engine within few months.
Bitcoin will become like gold whose only value would remain to the storage and as an artifact which people likes to keep it with them. Because as far as usage for transaction is concerned people will prefer Ripple or Railblocks or Stellar or any other token system.
Summary
Although I may sound contrarian but I believe that Bitcoin in itself will loose it value by half within 2018 due to the transfer of funds to other instruments, large number of token instruments and less usage of bitcoin.
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