2017 was a remarkable year for Bitcoin, as the digital currency saw its price sky rocket up to $19,000 towards the end of the year. The impressive thing about it all is that there is still a high possibility that this currency will continue hitting new records well into 2018. As we begin 2018, it may be exciting to know that there are other cryptocurrencies that still have potential to keep doubling up in prices. Even with the uncertainty about how secure some of these currencies are, we can still bet that they are worth the investment risk. After all, almost all forms of investment bear a substantial risk of collapse but we may choose to enjoy the ride while it is here.
Expect many more ICOs in 2018
From a quick look at the cryptocurrencies market, it is apparent that there are plenty of new entrants into the scene every week. Even jobsites are always hiring coders and IT staff that is conversant with digital asset creation. This has kept some investors cautious about the status of bitcoin because there is a little fear that something bigger and better may soon overshadow the bitcoin. It is almost a craze as people want a piece of it hoping to come up with an alternative that can bring the financial success that the same creators of bitcoin have now. Finding initial investors does not seem to be a big deal with all the venture capital that is being thrown around.
Placing an initial coin offering costs a lot of money and also needs brave initial investors to bankroll their creation. This has still not slowed their emergence. The cryptocurrency exchange has moved from just about 6 currencies a few years ago to the now thousands of different tokens. More are still scheduled to launch in 2018, each offering a different benefit to lure investors.
Which other factors affect the value of the bitcoin?
Bitcoin and Ripple have doubled their value over 2017. They have managed to thrive in a market that is perceived to be crowded. The idea that people are accepting it more as a means of payment shows that the market is gaining more trust for the cryptocurrency. The only times that Bitcoin prices seemed to falter was when some adverse new legislation in Asia affected their usage. For example in 2017, South Korea had announced a temporary ban on the use of anonymous cryptocurrency accounts and this was perceived to be targeting bitcoin use. South Korea and Vietnam make up about 80% of all the Bitcoin transactions that took place in 2016 and 2017. On the announcement of the ban, the bitcoin prices fell by about 8.5% on a single day of trading. Funny enough, the prices rallied back to a new record after 3 days.
Zcash is a cryptocurrency to invest in as an alternative to bitcoin
Just how competitive are the other tokens compared to bitcoin? Bitcoin made its name from the fact that it promises anonymity for its users. However, people figured out that by tracing back a wallet transaction history, it is still possible to associate a possible owner with relative accuracy. Zcash is a new cryptocurrency that tries to solve that problem by encrypting both the information about each transaction and the information about the wallet. This gives it an advantage over bitcoin as hackers or spies cannot quite figure out the information about the people exchanging money. Zcash was trading at $542 by the start of 2018 yet it was trading at $60 around April 2017. It is also a good trading alternative to Bitcoin.
Strong fundamentals will keep the Bitcoin and the Greenbuck in high demand
Zcash and Bitcoin both have strong fundamentals at the moment, while the US dollar also has a stable outlook. Solid manufacturing and employment data from the USA show that the economic performance is beating the market expectations. The ISM manufacturing PMI for December read 59.7, ahead of the 58.1 expectation. The dollar has gained versus other world majors during the first week of trading in 2018. The attention in the forex market has now shifted back to whether or not there will be rate hikes in over the first half of 2018.