With 2017 coming to an end, cryptocurrencies have dominated the financial markets across the globe.
The first digital currency bitcoin was created back in 2008 after the world economic meltdown though they didn’t become popular until eight years later. This year, cryptocurrencies took their dominance to another level, and they are likely to extend that dominance in 2018.
Of all the cryptocurrencies, Bitcoin (BTC) has been the most revered and had the biggest development this year. It began the year trading at roughly $1,000 but 12 months later; its price has since grown by more than 18 times. This signifies a massive ROI for anyone who had bitcoin early this year. The surge in the price of bitcoin was due to several factors, but the major one was the currency listed for futures trading on both CBOE and CME trading platforms.
While bitcoin has gotten most of the attention, other cryptos performed excellently this year. The second largest crypto Ethereum (ETH) has seen its price increase over 90 times this year, though people didn’t take notice of that. One of the reasons for that was because it hasn’t reached the stratospheric price regions as BTC has but purely regarding returns, ETH has performed better than bitcoin. Other cryptos such as Litecoin (LTC) and Ripple (XRP), along with IOTA performed excellently this year and all signs point to them dominating the crypto space next year.
For 2018, analysts expect that the bitcoin price will continue to grow even though it has witnessed a plunge this past few day. The fact that we have a limited supply of BTC around the world should favour the bulls in the long run, though the run wouldn’t last long due to the introduction of bitcoin futures, with investors set to focus on other cryptocurrencies with the aim of getting quicker returns. Altcoins are expected to dominate 2018 as bitcoin begins to consolidate its gains and hence loses some of its sheens.
Amongst the altcoins, ether, ripple, Litecoin, and IOTA are most likely to replace bitcoin next year. The arrangement at this point is justified though things could change as the crypto world is a fast moving one. Ether and ripple both have strong fundamentals in their favor and makes it easier for other apps to be built upon. Ripple has become a favorable choice in many of the payment applications, thus banks and other financial institutions are using it more often, an indicator that it could gain wide acceptance across the financial world.
These four cryptocurrencies are expected to be the focus of traders and investors next year. An indication of this is the increase in their price action over the last few weeks. Bitcoin isn’t expected to just fade away next year without putting up a fight, it is expected that bitcoin will continue to be in the race but chances are high that altcoins will outpace it next year.